Memorial Corporation makes a special-purpose machine, D4H, used in the textile industry. Memorial has designed the D4H machine for 2017 to be distinct from its competitors. It has been generally regarded as a superior machine. Memorial presents the following data for 2016 and 2017. i (Click the icon to view additional information.) E(Click the icon to view the data.) Read the requirements Requirement 1. Calculate the operating income of Memorial Corporation in 2016 and 2017. 2016 i Requirements Revenues Costs Direct material costs 1. Calculate the operating income of Memorial Corporation in 2016 and 2017 Manufacturing conversion costs 2. Calculate the growth, price-recovery, and productivity components that explain the change in operating income from 2016 to 2017. Selling and customer service costs 3. Comment on your answer in requirement 2. What do these components Total costs indicate? Operating income Print Done ? Enter any number in the edit fields and then click Check Answer. Memorial Corporation makes a special-purpose machine, D4H, used in the textile industry. Memorial has designed the D4H machine for 2017 to be distinct from its competitors. It has been generally regarded as a superior machine. Memorial presents the following data for 2016 and 2017. i Data Table X More Info 2016 2017 1. Units of D4H produced and sold 250 260 2. Selling price 36,000 $ $ 37,000 Memorial produces no defective machines, but it wants to reduce direct materials usage per D4H machine in 2017. Conversion costs in each year depend on 3. Direct materials (kilograms) 295,000 300,000 production capacity defined in terms of D4H units that can be produced, not the actual units produced. Selling and customer-service costs depend on the number of customers that Memorial can support, not the actual number of customers it 4. Direct material cost per kilogram 7.25 $ 7.75 5. Manufacturing capacity in units of D4H 290 290 serves. Memorial has 78 customers in 2016 and 85 customers in 2017. $ 2,407,000 $ 2,436,000 6. Total conversion costs 7. Conversion cost per unit of capacity (row 6/ row 5) $ 8,300 $ 8,400 Print Done 8. Selling and customer-service capacity 110 customers 100 customers $ 1,100,000 $ 9. Total selling and customer-service costs 990,000 $ 10,000 $ 10. Selling and customer-service capacity per customer (row 9 / row 8) 9,900