Truman Company manufactures a DVD player called Orlicon. i (Click the icon to view additional information.) As a result of the actions taken, quality has significantly improved in 2017 while rework and unit costs of the Orlicon have decreased. Truman has reduced manufacturing capacity because capacity is no longer needed to support rework. Requirement 1. Calculate operating income of Truman Company for 2016 and 2017. (Use parentheses or a minus sign for a loss.) Truman has also lowered the Orlicon's selling price to gain market share and unit sales have increased. Information about the current period (2017) and last period (2016) follows. (Click the icon to view the information.) i (Click the icon to view additional information.) Read the requ Data Table Revenues Costs 2016 2017 Direct material costs Manufacturing conversion costs Selling and customer service costs Total costs Operating income (loss) Requirement 2. Calculate the growth, price-recovery, and productivity components that explain the change in operating income from 2016 to 2017 To assist you, use the popup to identify the various components of the formulas. (Click to view the components you will use in your formulas.) - 2016 2017 1. Units of Orlicon produced and sold 4,000 6,000 2. Selling price 3. Direct materials used (kits*) 4. Direct material cost per kit* $ 96 $ 82 8,000 7,000 27 $ 27 5. Manufacturing capacity in kits processed 17,000 9,000 6. Total conversion costs $ 7. Conversion cost per unit of capacity (row 6 + row 5) $ 408,000 $ 24 $ 216,000 24 8. Selling and customer-service capacity 95 customers 95 customers 9. Total selling and customer-service costs $ 9,500 $ 14,250 Selling and customer-service capacity per customer (row 9 + row 10.8) $ 100 $ 150 * A kit is composed of all the major components needed to produce a DVD player.