Sting Corporation makes a high-end computer monitor, CM7. Sting Corporation presents the following data for the years 2012 and 2013:

2012 2013

Units of CM 7 produced and sold 5,000 5,500

Selling price $400 $440

Direct materials (pounds) 15,000 15,375

Direct materials costs per pound $40 $44

Manufacturing capacity for CM7 (units) 10,000 10,000

Conversion costs $1,000,000 $1,100,000

Conversion costs per unit of capacity $100 $110

Selling and customer-service capacity (customers) 60 58

Total selling and customer-service costs $360,000 $362,500

Selling and customer-service capacity cost per customer $6,000 $6,250

Manufacturing conversion costs in each year depend on production capacity defined in terms of CM7 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. Sting Corporation has 100 customers in 2012 and 115 customers in 2013. The industry market size for high-end computer monitors increased 5% from 2012 to 2013.

Using the template table used in the Ransham Company example above, build a table reconciling the operating income of 2012 to the operating income of 2013. Out of the two basic strategies, Sting Corporations strategy is ________

	Income Statement Amounts in 2012	Revenue and Cost Effects of Growth Component in 2013	Revenue and Cost Effects of Price-Recovery Component in 2013	Cost Effect of Productivity Component in 2013	Income Statement Amounts in 2013
Revenues ($)
Costs
Operating income