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Data Table X 2018 2019 Number of T-shirts purchased 240,000 295,000 Number of T-shirts lost 2,100 4,200 Number of T-shirts sold 237,900 290,800 Average selling price 27.50 $ 29.50 Average cost per T-shirt 11.00 $ 9.50 Administrative capacity in terms of number of customers that can be served 4,800 4,100 Administrative costs 1,488,000 $ 1,312,000 Administrative cost per customer 310 $ 320 Design staff 8 8 Total design costs 464,000 $ 496,000 Design cost per employee 58,000 $ 62,000While T-Shirt Company sells a variety;r of Tshirts. White presents the following data for its ret two years of operations. 2018 and 2019. For simplicity, assume that all purchasing and selling costs are included in the average cost per Tshirt and that each customer buys one Tshirt. (Click the icon to vie-4nI the date.) Required 1. Calculate White's operating income in both 2018 and 2019. 2. Calculate the growth. pwmmvem and productivity components that explain the change in operating income from 2018 to 2019. 1. Comment on your answer in requirement 2. What does each ofthese components indicate? Requirement: 1. Calculate White's operating income in both 2013 and 2019. 2013 21119 Revenue Costs T-shirts purchased Administrative costs Design costs Total costs Operating income Requirement 2. Calculate the growth. pmmmvew, and productivity components that explain the change in operating income from 2018 to 2019. To awist you, use the popup to identity the various components ofthe formulas. Requirement 2. Calculate the growth, price-recovery, and productivity components that explain the change in operating income from 2018 to 2019. To assist you, use the popup to identify the various components of the formulas. (Click the icon to view the components you will use in your formulas.) Begin by determining the formula to calculate the revenue effect of growth. Then, enter the amounts in the formula. Revenue effect of growth Next, determine the formula to calculate the cost effect of growth for variable costs. Then, enter the amounts in the formula. Think, based upon the information provided to you, about which cost is variable. (Hold all decimals in interim calculations. Round each answer to the nearest whole dollar.) X Cost effect of growth for variable costsDetermine the formula to calculate the cost effect of growth for fixed costs. Then, enter the amounts in the formula. Calculate the cost effect of growth for administrative costs first, and then for design costs. (If any of the amounts to be entered are zero, please enter "0".) X Cost effect of growth for fixed costs ) X administrative costs ) X design costs Calculate the net change in operating income due to the growth component. Be sure to label each component as to whether the amount has a favourable effect or an unfavourable effect on operating income. (Label each component as favourable (F) or unfavourable (U).) Revenue effect of growth Cost effect of growth Change in operating income due to growthCalculate the price-recovery component of the change in operating income. Begin with the revenue effect of price-recovery. Select the formula you will need, and then enter the amounts to calculate the revenue effect of price-recovery. )x Revenue effect of price-recovery ) x Next, determine the formula to calculate the cost effect of price-recovery for variable costs. Then, enter the amounts in the formula. Think, based upon the information provided to you, about which cost is variable. (Round your final answer to the nearest whole dollar.) X Cost effect of price-recovery for variable costs x Determine the formula to calculate the cost effect of price-recovery for fixed costs. Then, enter the amounts in the formula. Calculate the cost effect of price-recovery for administrative costs first, then for design costs. ) x Cost effect of price-recovery for fixed costs )x administrative costs) x design costs Calculate the net change in operating income due to the price-recovery component. Be sure to label each component as to whether the amount has a favourable effect or an unfavourable effect on operating income. (Label each component as favourable (F) or unfavourable (U).) Revenue effect of price-recovery Cost effect of price-recovery Change in operating income due to price-recovery Calculate the productivity component of the change in operating income. Begin with the cost effect of productivity for variable costs. Select the formula you will need, and then enter the amounts to calculate the revenue effect of productivity. ) X Cost effect of productivity for variable costs XDetermine the formula to calculate the cost effect of productivity for fixed costs. Then, enter the amounts in the formula. Calculate the cost effect of productivity for administrative costs first, and then for design costs. (If any of the amounts to be entered are zero, please enter "0".) ) x Cost effect of productivity for fixed costs )X administrative costs )X design costs Calculate the net change in operating income due to the productivity component. Be sure to label each component as to whether the amount has a favourable effect or an unfavourable effect on operating income. (If there is no effect, enter a zero and leave the dropdown blank. If there is an effect, label the component as favourable (F) or unfavourable (U).) Change in operating income due to productivityChange in operating income due to productivity Requirement 3. Comment on your answer in requirement 2. What does each of these components indicate? The analysis of operating income indicates that a significant amount of the in operating income resulted from White's strategy. The company was able to continue to while growing sales. White