The XRide manufactures an entry-level hoverboard, HOV-X. Pursuing a cost-leadership strategy, the company has tried to improve quality and reduce costs. As a result of the actions taken over the last year, quality has significantly improved in 2020 while rework and unit costs of the HOV-X have decreased. XRide has reduced manufacturing capacity because capacity is no longer needed to support rework. XRide has also lowered HOV-X's selling price to gain market share and unit sales have increased. Information about the current period (2020) and last period (2019) follows: (Click the icon to view the information for 2020 and 2019.) (Click the icon to view additional information.) (Click the icon to view operating income for 2019 and 2020.) (Click the icon to view the components to explain changes in operating income.) Suppose that during 2020, the market for hoverboards increased 20%. All increases in market share (that is, sales increases greater than 20%) and decreases in the selling price of HOV-X are the result of XRide's strategic actions. Read the requirement. First, calculate how much of the change in operating income from 2019 to 2020 is due to the industry-market-size factor, product differentiation, and cost leadership. (Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar.) Change due to industry market-size Change due to product differentiation Change due to cost leadership Change in operating income How does this relate to XRide's strategy and its success in implementation? Explain. XRide successful in implementing its strategy. The in operating income during 2020 was due to It its prices to gain market share that might also benefit it in future periods. XRide's change in operating income in 2020 was by a growth in the overall market size. More info Conversion costs in each year depend on production capacity defined in terms of kits that can be processed, not the actual kits started. Selling and customer-service costs depend on the number of customers that XRide can support, not the actual number of customers it serves. XRide has 77 customers in 2019 and 82 customers in 2020. Reference Revenues 2019 $ 465,000 $ 2020 760,000 Costs Direct material costs 279,000 372,000 Manufacturing conversion costs 399,000 315,000 9,500 15,200 Selling and customer service costs 687,500 702,200 Total costs $ (222,500) $ 57,800 Operating income Reference XRide has calculated the following growth, price-recovery, and productivity components that explain the change in operating income from 2019 to 2020: - Revenue effect of growth $ 465,000 F 279,000 Cost effect of growth U $ 186,000 Change in operating income due to growth F Revenue effect of price recovery $ 170,000 U 5,700 Cost effect of price recovery U $ 175,700 Change in operating income due to price recovery U Direct material costs $ 186,000 F Conversion costs 84,000 F 0 Selling and customer-service costs Change in operating income due to productivity $ 270,000 F