The change in operating income from 2012 to 2013 due to growth in market size, product differentiation and cost leadership. Whether the company has been successful in implementing the strategy or not.
Given information:
For the year 2012,
The number of T-shirts sold is 205,000.
The average selling price is $32 per T-shirt.
The number of T-shirts purchased is 225,500.
The average cost per T-shirt is $17.
The administrative cost is $1,739,000.
For the year 2013,
The number of T-shirts sold is 233,000.
The average selling price is $33 per T-shirt.
The number of T-shirts purchased is 257,000.
The average cost per T-shirt is $15.
The administrative cost is $1,691,000.
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