Rambo & Sons buys T-shirts in bulk, applies its own trendsetting silk-screen designs, and then sells the T-shirts to a number of retailers. Rambo wants to be known for its trendsetting designs, and it wants every teenager to be seen in a distinctive Rambo T-shirt. Rambo presents the following data for its first 2 years of operations, 2011 and 2012.

Administrative costs depend on the number of customers that Rambo has created capacity to support, not on the actual number of customers served. Rambo had 4,100 customers in 2011 and 4,000 customers in 2012.

Data table Requirement 1. Calculate Rambo's operating income in both 2011 and 2012. Requirement 2. Calculate the growth, price-recovery, and productivity components that explain the change in operating income from 2011 to 2012. (Click 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. (()x)x=Revenueeffectofgrowth= (()x== (-)x=Costeffectofgrowthforfixedcostsx= Data table A Actual units of capacity in 2011 B Actual units of capacity in 2012 C Actual units of input used to produce 2011 output D Actual units of input used to produce 2012 output E Actual units of output sold in 2011 F Actual units of output sold in 2012 G Input price in 2011 H Input price in 2012 I Price per unit of capacity in 2011 J Price per unit of capacity in 2012 K Selling price in 2011 L Selling price in 2012 M Units of input required to produce 2012 output in 2011 N Units of capacity required to produce 2012 output in 2011 (Click to view the components you will use in your formulas.) ( = Revenue effect of price-recovery ( = its Determine 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. :-recovery for fixed costs Data table A Actual units of capacity in 2011 B Actual units of capacity in 2012 C Actual units of input used to produce 2011 output D Actual units of input used to produce 2012 output E Actual units of output sold in 2011 F Actual units of output sold in 2012 G Input price in 2011 H Input price in 2012 I Price per unit of capacity in 2011 J Price per unit of capacity in 2012 K Selling price in 2011 L Selling price in 2012 M Units of input required to produce 2012 output in 2011 N Units of capacity required to produce 2012 output in 2011 (Click to view the components you will use in your formulas.) xx=Costeffectofproductivityforvariablecosts= etermine the formula to calculate the cost effect of productivity for fixed costs. Then, enter the amounts in the formula. Calculate the cost effect of growth for administrative costs. J)xCosteffectofproductivityforfixedcosts l)x alculate the net change in operating income due to the productivity component. Be sure to label the amount has a favorable (F) effect on operating income or unfavorable (U) effect. hange in operating income due to productivity Data table A Actual units of capacity in 2011 B Actual units of capacity in 2012 C Actual units of input used to produce 2011 output D Actual units of input used to produce 2012 output E Actual units of output sold in 2011 F Actual units of output sold in 2012 G Input price in 2011 H Input price in 2012 I Price per unit of capacity in 2011 J Price per unit of capacity in 2012 K Selling price in 2011 L Selling price in 2012 M Units of input required to produce 2012 output in 2011 N Units of capacity required to produce 2012 output in 2011 Requirement 3. Comment on your answers 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 Rambo's strategy. The company was able to continue to while growing sales. Rambo