Question
Strategic Analysis of Profitability of Ransham Company: Income Statement Amounts in 2014 Revenue and Cost Effects of Growth Component in 2015 Revenue and Cost Effects
Strategic Analysis of Profitability of Ransham Company:
| Income Statement Amounts in 2014 | Revenue and Cost Effects of Growth Component in 2015 | Revenue and Cost Effects of Price-Recovery Component in 2015 | Cost Effect of Productivity Component in 2015 | Income Statement Amounts in 2015 |
Revenues ($) | 34,000 | 10,000 F | 1,000 U | (b) | (e) |
Costs | 23,500 | (a) | 500 U | (c) | 26,100 |
Operating income | 10,500 | 5,500 F | 1,500 U | 2,400 F | (d) |
What is the cost effect of the growth component (a)?
What is the revenue effect of the productivity component (b)?
What is the cost effect of the productivity component (c)?
What is the operating income amount for 2015 (d)?
What is the revenue amount for 2015 (e)?
Out of the two basic strategies, Ransham Companys strategy is
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