on minus a special purpose machine, D4H used in the textile industry Marston has designed the D4H machine for 2017 to be distinct from its competitors. It has been generally regarded as a superior machine Marston presents the following data for 2016 and 2017 Click the icon to view the data (Click the icon to view additional information) Manufacturing conversion costs Selling and customer service costs Total costs 2,025,000 1 100 000 5.887 500 5112500 S 2,050,000 950.000 6060 000 6500 000 Operating income $ Requirement 2. Calculate the growth price-recovery, and productivity components that explain the change in operating income from 2016 to 2017 To assist you use the popup to identify the various components of the formulas Click to view the components you will use in your formulas.) Begin by determining the formulato calculate the revenue effect of growth. Then enter the amounts in the formula = Revenue effect of growth 275 ) $ 44,000 $ 1100,000 250 Ne dormine the formula to calculate the cost effect of growth for direct material costs Then enter the amounts in the formula Think carefully based upon the information given to you about which cost is direct material Cost effect of growth for direct material costs Enter any number in the edit fields and then click Check Answer Data Tab 2016 2017 co 250 275 Cald 44.000 $ 46,000 325,000 340,000 $ 850 S 9.00 250 250 $ 2,025,000 $ 2,050,000 $ 8,100 $ 8200 100 customers 95 customers $ 1,100,000 $ 950,000 $ 11,000 10,000 use the 1. Units of D4H produced and sold 2. Selling price 3. Direct materials (kilograms) 4. Direct material cost per kilogram 5. Manufacturing capacity in units of D4H 6. Total conversion costs 7. Conversion cost per unit of capacity (row 6 / row 5) 8. Selling and customer service capacity 9. Total selling and customer service costs 10. Selling and customer service capacity per customer (row 9 / row 8) iew and mining sed u 75 ne the ven to Print Done Check Answe umber in the edit fields and then click Check Answer Clear All Ining ce costs 1 100.000 950 000 59.971600 ALANI i Requirements growth identi ents yo 1. Calculate the operating income of Marston Corporation in 2016 and 2017 2. Calculate the growth, price-recovery, and productivity components that explain the change in operating income from 2016 to 2017 3. Comment on your answer in requirement 2. What do these components indicate? ula to Print Done calcula t which open ink ) X = Cost effect of growth for direct material costs fields and then click Check Answer. Clear All costs 2,025,000 2,050,000 wice cost i More Info m 20 he growth to identi onents yg Marston produces no defective machines, but it wants to reduce direct materials usage per D4H machine in 2017 Conversion costs in each year depend on 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 Marston can support, not the actual number of customers it serves. Marston has 79 customers in 2016 and 86 customers in 2017 rmula to Print Done ne Uone a to calcula bout which be hink can = Cost effect of growth for direct material costs edit fields and then click Check Answer. u uwun y n uyuuuu us a SUIVI did maisto presents the following data for 2016 and 2017 icon to view the data.) (Click the icon to view additional information.) uirements curing 6 Reference nd cu osts come at 2.0 u use view A Actual units of capacity in 2016 B Actual units of capacity in 2017 C Actual units of input used to produce 2016 output D Actual units of input used to produce 2017 output E Actual units of output sold in 2016 F Actual units of output sold in 2017 G Input price in 2016 H Input price in 2017 Price per unit of capacity in 2016 J Price per unit of capacity in 2017 K Selling price in 2016 L Selling price in 2017 M Units of input required to produce 2017 output in 2016 N Units of capacity required to produce 2017 output in 2016 termin F 275 Print Done mine til given to you, about which M ) Cost effect of growth for direct material costs on minus a special purpose machine, D4H used in the textile industry Marston has designed the D4H machine for 2017 to be distinct from its competitors. It has been generally regarded as a superior machine Marston presents the following data for 2016 and 2017 Click the icon to view the data (Click the icon to view additional information) Manufacturing conversion costs Selling and customer service costs Total costs 2,025,000 1 100 000 5.887 500 5112500 S 2,050,000 950.000 6060 000 6500 000 Operating income $ Requirement 2. Calculate the growth price-recovery, and productivity components that explain the change in operating income from 2016 to 2017 To assist you use the popup to identify the various components of the formulas Click to view the components you will use in your formulas.) Begin by determining the formulato calculate the revenue effect of growth. Then enter the amounts in the formula = Revenue effect of growth 275 ) $ 44,000 $ 1100,000 250 Ne dormine the formula to calculate the cost effect of growth for direct material costs Then enter the amounts in the formula Think carefully based upon the information given to you about which cost is direct material Cost effect of growth for direct material costs Enter any number in the edit fields and then click Check Answer Data Tab 2016 2017 co 250 275 Cald 44.000 $ 46,000 325,000 340,000 $ 850 S 9.00 250 250 $ 2,025,000 $ 2,050,000 $ 8,100 $ 8200 100 customers 95 customers $ 1,100,000 $ 950,000 $ 11,000 10,000 use the 1. Units of D4H produced and sold 2. Selling price 3. Direct materials (kilograms) 4. Direct material cost per kilogram 5. Manufacturing capacity in units of D4H 6. Total conversion costs 7. Conversion cost per unit of capacity (row 6 / row 5) 8. Selling and customer service capacity 9. Total selling and customer service costs 10. Selling and customer service capacity per customer (row 9 / row 8) iew and mining sed u 75 ne the ven to Print Done Check Answe umber in the edit fields and then click Check Answer Clear All Ining ce costs 1 100.000 950 000 59.971600 ALANI i Requirements growth identi ents yo 1. Calculate the operating income of Marston Corporation in 2016 and 2017 2. Calculate the growth, price-recovery, and productivity components that explain the change in operating income from 2016 to 2017 3. Comment on your answer in requirement 2. What do these components indicate? ula to Print Done calcula t which open ink ) X = Cost effect of growth for direct material costs fields and then click Check Answer. Clear All costs 2,025,000 2,050,000 wice cost i More Info m 20 he growth to identi onents yg Marston produces no defective machines, but it wants to reduce direct materials usage per D4H machine in 2017 Conversion costs in each year depend on 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 Marston can support, not the actual number of customers it serves. Marston has 79 customers in 2016 and 86 customers in 2017 rmula to Print Done ne Uone a to calcula bout which be hink can = Cost effect of growth for direct material costs edit fields and then click Check Answer. u uwun y n uyuuuu us a SUIVI did maisto presents the following data for 2016 and 2017 icon to view the data.) (Click the icon to view additional information.) uirements curing 6 Reference nd cu osts come at 2.0 u use view A Actual units of capacity in 2016 B Actual units of capacity in 2017 C Actual units of input used to produce 2016 output D Actual units of input used to produce 2017 output E Actual units of output sold in 2016 F Actual units of output sold in 2017 G Input price in 2016 H Input price in 2017 Price per unit of capacity in 2016 J Price per unit of capacity in 2017 K Selling price in 2016 L Selling price in 2017 M Units of input required to produce 2017 output in 2016 N Units of capacity required to produce 2017 output in 2016 termin F 275 Print Done mine til given to you, about which M ) Cost effect of growth for direct material costs