1.
The operating income in both the year 2012 and 2013.
Given information:
For the year 2012,
The number of Kits produced and sold is 8,000.
The average selling price is $95 per kit.
The average cost per Kit is $32.
The conversion cost is $280,000.
For the year 2013,
The number of Kits sold is 11,000.
The average selling price is $80 per kit.
The average cost per Kit is $32.
The conversion cost is $260,000.
2.
The growth, price recovery and productivity components that explain the change in operating income.
Given information:
The actual units of Kits sold in 2013 are 11,000.
The actual units of Kits sold in 2012 are 8,000.
The selling price in 2012 is $95.
The actual units of Kits used to produce output in 2012 are 10,000.
The cost of the Kit in 2012 is $32.
The administrative capacity is 90 customers.
3.
To explain: The answers in requirement 2 and the indication of each component.
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