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Marshall Corporation makes a special-purpose D4H machine used in the textile industry. Marshall has designed the D4H machine for 2021 to be distinct from its competitors. It has been generally regarded as a superior machine. Marshall presents the following data for the years 2021 and 2022. (Click the icon to view the data.) (Click the icon to view the components.) Suppose that between 2021 and 2022 the market for Marshall's special-purpose machines grew at 5%. All increases in market share (that is, sales increases greater than 5%) are the result of Marshall's strategic actions. Required Calculate how much of the change in operating income between 2021 and 2022 is due to the industry market-size factors, cost leadership, and product differentiation. How successful has Marshall been in implementing its strategy? Explain. 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 or 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 component x( Unit increase from market size 1 Total unit increase = Change in operating income due to industry market size

Marshall Corporation makes a special-purpose D4H machine used in the textile industry. Marshall has designed the D4H machine for 2021 to be distinct from its competitors. It has been generally regarded as a superior machine. Marshall presents the following data for the years 2021 and 2022. (Click the icon to view the data.) (Click the icon to view the components.) Suppose that between 2021 and 2022 the market for Marshall's special-purpose machines grew at 5%. All increases in market share (that is, sales increases greater than 5%) are the result of Marshall's strategic actions. Required Calculate how much of the change in operating income between 2021 and 2022 is due to the industry market-size factors, cost leadership, and product differentiation. How successful has Marshall been in implementing its strategy? Explain. 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 or 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 component x( Unit increase from market size 1 Total unit increase = Change in operating income due to industry market size

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Marshall Corporation makes a special-purpose D4H machine used in the textile industry. Marshall has designed the D4H machine for 2021 to be distinct from its competitors. It has been generally regarded as a superior machine. Marshall presents the following data for the years 2021 and 2022. (Click the icon to view the data.) (Click the icon to view the components.) Suppose that between 2021 and 2022 the market for Marshall's special-purpose machines grew at 5%. All increases in market share (that is, sales increases greater than 5%) are the result of Marshall's strategic actions. Required Calculate how much of the change in operating income between 2021 and 2022 is due to the industry market-size factors, cost leadership, and product differentiation. How successful has Marshall been in implementing its strategy? Explain. 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 or 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 component x( x( C Unit increase from market size 1 Total unit increase ) = ) = Change in operating income due to industry market size
Transcribed Image Text:Marshall Corporation makes a special-purpose D4H machine used in the textile industry. Marshall has designed the D4H machine for 2021 to be distinct from its competitors. It has been generally regarded as a superior machine. Marshall presents the following data for the years 2021 and 2022. (Click the icon to view the data.) (Click the icon to view the components.) Suppose that between 2021 and 2022 the market for Marshall's special-purpose machines grew at 5%. All increases in market share (that is, sales increases greater than 5%) are the result of Marshall's strategic actions. Required Calculate how much of the change in operating income between 2021 and 2022 is due to the industry market-size factors, cost leadership, and product differentiation. How successful has Marshall been in implementing its strategy? Explain. 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 or 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 component x( x( C Unit increase from market size 1 Total unit increase ) = ) = Change in operating income due to industry market size
Data table Units of D4H produced and sold 1. 2. Selling price 3. Direct materials (kilograms) 4. Direct material cost per kilogram 5. Manufacturing capacity (units of D4H) 6. Total conversion costs 7. 8. Selling and customer-service capacity 9. Total selling and customer-service costs 10. Selling and customer-service capacity cost per customer 11. Design staff 12. Total design costs 13. Design cost per employee Conversion cost per unit of capacity Alt+Q Print Done $ $ 210 41,000 $ 310,000 7.25 $ 250 2,125,000 $ 8,500 $ $ $ 2,150,000 8,600 95 customers 90 customers 900,000 10,000 12 1,045,000 $ 11,000 $ 12 1,212,000 $ 101,000 $ $ $ ZUZT $ $ ZUZZ 235 43,000 325,000 7.75 250 1,218,000 101,500 (similar to) Data table HW Score: 3.03%, 0.12 of 4 points Daint 0 10 of 1 Revenue effect of growth Cost effect of growth The company has chosen a product differentiation strategy. The growth, price- recovery, and productivity components of the change in operating income from 2021 to 2022 are as follows: Change in operating income due to growth Revenue effect of price-recovery Cost effect of price-recovery Change in operating income due to price-recovery Change in operating income due to productivity Print Done $ 1,025,000 F 267,561 U 757,439 F 470,000 F 109,453 U 360,547 F 219,764 $ $ $ $ - F O Save Jetitors. It h han 5%) ar How succe ther the an the compo
Transcribed Image Text:Data table Units of D4H produced and sold 1. 2. Selling price 3. Direct materials (kilograms) 4. Direct material cost per kilogram 5. Manufacturing capacity (units of D4H) 6. Total conversion costs 7. 8. Selling and customer-service capacity 9. Total selling and customer-service costs 10. Selling and customer-service capacity cost per customer 11. Design staff 12. Total design costs 13. Design cost per employee Conversion cost per unit of capacity Alt+Q Print Done $ $ 210 41,000 $ 310,000 7.25 $ 250 2,125,000 $ 8,500 $ $ $ 2,150,000 8,600 95 customers 90 customers 900,000 10,000 12 1,045,000 $ 11,000 $ 12 1,212,000 $ 101,000 $ $ $ ZUZT $ $ ZUZZ 235 43,000 325,000 7.75 250 1,218,000 101,500 (similar to) Data table HW Score: 3.03%, 0.12 of 4 points Daint 0 10 of 1 Revenue effect of growth Cost effect of growth The company has chosen a product differentiation strategy. The growth, price- recovery, and productivity components of the change in operating income from 2021 to 2022 are as follows: Change in operating income due to growth Revenue effect of price-recovery Cost effect of price-recovery Change in operating income due to price-recovery Change in operating income due to productivity Print Done $ 1,025,000 F 267,561 U 757,439 F 470,000 F 109,453 U 360,547 F 219,764 $ $ $ $ - F O Save Jetitors. It h han 5%) ar How succe ther the an the compo
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