Question11 (16 points) Gaudi Des. is an architectural firm that has been in practice only a few years. Because it is a relatively new firm, the market for the firm's services is very competitive. To compete successfully, Gaudi must deliver quality services at a low cost. Gaudi presents the following data for 2016 and 2017. 2016 2017 1. Number of jobs billed 40 50 2. Selling price per job $32,000 $30,000 3. Architect labor-hours 24,000 4. Cost per architect labor-hour $35 $36 5. Architect support capacity (number of jobs the firm can do) 60 60 6. Total cost of software-implementation support $168,000 $180,000 7. Software-implementation support-capacity cost per job (row 6 = row 5) $2,800 $3,000 27,000 Architect labor-hour costs are variable costs. Architect support costs for each year depend on the Architect support capacity that Gaudi chooses to maintain each year (that is, the number of jobs it can do each year). Architect support costs do not vary with the actual number of jobs done that year. A. Calculate the revenue effect of growth. (2 points) B. Calculate the cost effect of growth. (3 points) C. Calculate the revenue effect of price-recovery. (2 points) D. Calculate the cost effect of price-recovery. (3 points) E. Calculate productivity component of cost changes. (3 points) F. Explain (or summarize) the change in operating income from 2016 to 2017 using answers from A-E. (3 points)