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Radical & Sons buys T-shirts in bulk, applies its own trendsetting silk-screen designs, and then sells the T-shirts to a number of retailers Radical wants
Radical & Sons buys T-shirts in bulk, applies its own trendsetting silk-screen designs, and then sells the T-shirts to a number of retailers Radical wants to be known for its trendsetting designs, and it wants every teenager to be seen in a distinctive Radical T-shirt. Radical presents the following data for its first two years of operations, 2019 and 2020. 2019 2020 Number of T-Shirts Purchased 216,140 254,000 Number of T-Shirts discarded 14,140 17,000 Number of T-Shirts Sold 202,000 237,000 Average Selling Price 29.00 30.00 Average Cost per T-Shirt 14.00 12.00 Administrative Capacity (number of customers) 4,400 4,150 Administrative Costs 1,496,000 1.452,500 Administrative costs per customer 340 350 Administrative costs depend on the number of customers Radical has created capacity to support, not on the actual number of customers served. Radical had 4,000 customers in 2019 and 3,900 customers in 2020 En des An 1. Calculate the operating Income for both 2019 and 2020, 2. Calculate the growth, price recovery, and productivity components that explain the change in operating income from 2019 to 2020. C. minimum act ha
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