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Please solve Following a strategy of product differentiation, Electronics inc. makes a hand held calculator, 11300 . Electronics Inc. presents the following data for the
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Following a strategy of product differentiation, Electronics inc. makes a hand held calculator, 11300 . Electronics Inc. presents the following data for the years 1 and 2 : Electronics inc. produces no defective units but it wants to reduce direct materials usage per unit of 1300 in year 2. Manufacturing conversion costs in each year depend on production capacity defined in terms of 11300 units that can be produced. Selling and customer-service costs depend on the number of customers that the customer and service functions are designed to support. Neither conversion costs or customer-service costs are affected by changes in actual ofume. Electronics inc, has 23 customers in year 1 and 25 customers in year 2 . The industry market size for hand held Iculators increased 5% from year 1 to year 2 . Of the $6 increase in unit selling price, 52 is due to a general increase g. What amount is the revenue effect of the price-recovery component? h. What amount is the cost effect of the price-recovery component? i. What is the net change in operating income as a result of the price-recovery component? j. What is the net effect on operating income as a result of the productivity component? k. The change in operating income from cost leadership. 1. The change in operating income due to industry wide effects. m. The effect of product differentiation on operating income and a summarization of the change in operating income between Year 1 to Year 2 Step by Step Solution
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