Mathilda Corporation manufactures a natural gas appliance, the Boiler 520B. The Corporation has designed the 520B to be different from its competitors. The Corporation presents the following data for the years 2016 and 2017:

	2016	2017
Units of 520B produced and sold	250	300
Selling price ($)	4000	4200
Direct materials (square metres of aluminium)	1250	1280
Direct material cost per square metre ($)	20	24
Manufacturing processing capacity (square metres of aluminium)	1400	1400
Conversion cost per unit of capacity	200	240

1. Calculate the operating income in 2016 and 2017. Show your workings.
2. Analyse the change in operating income to determine if strategy has been successful show your workings