Sunway Corporation is a small information systems consulting firm that specializes in helping companies implement sales management software. The market for Sunway's products is very competitive. To compete, Sunway must deliver quality service at a low cost. Sunway bills clients in terms of units of work performed, which depends on the size and complexity of the sales management system. Sunway presents the following data for the years 2018 and 2019. (Click the icon to view the data.) (Click the icon to view the components.) i (Click the icon to view more info.) Required Calculate how much of the change in operating income between 2018 and 2019 is due to industry market-size factors, cost leadership, and product differentiation. How successful has Sunway been in implementing its strategy? X Data table Data table 2018 2019 The company has chosen a cost leadership strategy. The growth, price- recovery, and productivity components of the change in operating income 1. Units of work performed 80 90 from 2018 to 2019 are as follows: 2. Selling price $ 49,000 $ 47,000 Revenue effect of growth 490,000 F 3. Software implementation labour-hours 29,000 31,500 Cost effect of growth 235,625 C 4. Cost per software implementation labour-hour $ 65 $ 66 Change in operating income due to growth $ 254,375 F 5. Software implementation support capacity (units of work) 95 95 $ 180,000 U 6. Total cost of software implementation support 408,500 $ 418,000 Revenue effect of price-recovery 72,125 7. Software implementation support capacity cost per unit of work 4,300 $ 4,400 Cost effect of price-recovery U Number of employees doing software development 6 252, 125 6 Change in operating income due to price-recovery $ C 9. Total software development costs 870,000 $ 900,000 Change in operating income due to productivity $ 74,250 F 10. Software development cost per employee $ 145,000 $ 150,000More info Suppose that during 2019 the market for implementing sales management software increased by 4%, and that Sunway experiences a 2% decline in prices. Assume that any further decreases in selling prices and increases in market share are strategic choices by Sunway's management to implement Sunway's cost leadership strategy.Begin by selecting the formula you will use. Then, enter the amounts and calculate the change in operating income due to industry market-size factors. Determine whether the amount has a favourable effect on operating income or unfavourable effect. (Hold all decimals in interim calculations. Round your final answer to the nearest whole number. Label the component as favourable "F" or unfavourable "U".) Change in operating income due to industry market size x ( Before calculating the change in operating income due to product differentiation, you must calculate the growth in market share due to product differentiation. Begin by selecting the formula you will use. Then, enter the amounts and calculate the growth in market share due to product differentiation. Determine whether the amount has a favourable effect or an unfavourable effect on operating income. (Round your final answer to the nearest whole number. Label the component as favourable "F" or unfavourable "U".) Change in operating income % X = due to a decline in selling price % X Now, calculate the change in operating income due to product differentiation. Label each component as to whether the amount has a favourable effect or an unfavourable effect on operating income. (Label each component as favourable "F" or unfavourable "U".) Growth in market share due to product differentiation Change in operating income due to product differentiation Before calculating the change in operating income due to cost leadership, you must calculate the growth in market share due to productivity improvement and the strategic decision to reduce the selling price Begin by selecting the formula you will use. Then, enter the amounts and calculate the growth in market share due to the reduction in the selling price. Determine whether the amount has a favourable effect on an unfavourable effect on operating income. (Hold all decimals in interim calculations. Round your final answer to the nearest whole number. Label the component as favourable "F" or unfavourable "U".)Growth in market share x ( = due to reduction in selling price x ( = Now, determine the change in operating income due to cost leadership. Determine whether the amount has a favourable effect or an unfavourable effect on operating income. (Label each component as favourable "F" or unfavourable "U".) Change in operating income due to cost leadership How successful has Sunway been in implementing its strategy? Sunway successful in implementing its cost leadership strategy. Sunway was unable to pass along increases in labour costs, due to the decrease in selling price of $ . However, Sunway was able to take advantage of gains to reduce price, gain market share, and increase operating income