Part (A) of the problem can be disregarded. I need helpfilling in the table in the lower bottom of the problem usinginformation from part (B). Thank you
(A) Strategic Analysis of Profitability of RanshamCompany:
Income
Statement
Amounts
in 2014
Revenue and
Cost Effects
of Growth
Component
in 2015
Revenue and
Cost Effects of
Price-Recovery
Component
in 2015
Cost Effect of
Productivity
Component
in 2015
Income
Statement
Amounts
in 2015
Revenues ($)
34,000
10,000 F
1,000 U
(b)
(e)
Costs
23,500
(a)
500 U
(c)
26,100
Operating income
10,500
5,500 F
1,500 U
2,400 F
(d)
What is the cost effect of the growth component (a)?
What is the revenue effect of the productivity component(b)?
What is the cost effect of the productivity component (c)?
What is the operating income amount for 2015 (d)?
What is the revenue amount for 2015 (e)?
Out of the two basic strategies, Ransham Companyâs strategyis
(B) Sting Corporation makes a high-end computer monitor,CM7. Sting Corporation presents the following data for the years2012 and 2013:
2012 2013
Units of CM 7 produced andsold 5,000 5,500
Sellingprice $400 $440
Direct materials(pounds) 15,000 15,375
Direct materials costs perpound $40 $44
Manufacturing capacity for CM7(units) 10,000 10,000
Conversioncosts $1,000,000 $1,100,000
Conversion costs per unit ofcapacity $100 $110
Selling and customer-service capacity(customers) 60 58
Total selling and customer-servicecosts $360,000 $362,500
Selling and customer-service capacity costpercustomer $6,000 $6,250
Manufacturing conversion costs in each year depend on productioncapacity defined in terms of CM7 units that can be produced.Selling and customer-service costs depend on the number ofcustomers that the customer and service functions are designed tosupport. Sting Corporation has 100 customers in 2012 and 115customers in 2013. The industry market size for high-end computermonitors increased 5% from 2012 to 2013.
Using the template table used in the Ransham Company exampleabove, build a table reconciling the operating income of 2012 tothe operating income of 2013. Out of the two basic strategies,Sting Corporationâs strategy is ________
Income
Statement
Amounts
in 2012
Revenue and
Cost Effects
of Growth
Component
in 2013
Revenue and
Cost Effects of
Price-Recovery
Component
in 2013
Cost Effect of
Productivity
Component
in 2013
Income
Statement
Amounts
in 2013
Revenues ($)
Costs
Operating income
Part (A) of the problem can be disregarded. I need helpfilling in the table in the lower bottom of the problem usinginformation from part (B). Thank you
(A) Strategic Analysis of Profitability of RanshamCompany:
Income Statement Amounts in 2014 | Revenue and Cost Effects of Growth Component in 2015 | Revenue and Cost Effects of Price-Recovery Component in 2015 | Cost Effect of Productivity Component in 2015 | Income Statement Amounts in 2015 | |
Revenues ($) | 34,000 | 10,000 F | 1,000 U | (b) | (e) |
Costs | 23,500 | (a) | 500 U | (c) | 26,100 |
Operating income | 10,500 | 5,500 F | 1,500 U | 2,400 F | (d) |
What is the cost effect of the growth component (a)?
What is the revenue effect of the productivity component(b)?
What is the cost effect of the productivity component (c)?
What is the operating income amount for 2015 (d)?
What is the revenue amount for 2015 (e)?
Out of the two basic strategies, Ransham Companyâs strategyis
(B) Sting Corporation makes a high-end computer monitor,CM7. Sting Corporation presents the following data for the years2012 and 2013:
2012 2013
Units of CM 7 produced andsold 5,000 5,500
Sellingprice $400 $440
Direct materials(pounds) 15,000 15,375
Direct materials costs perpound $40 $44
Manufacturing capacity for CM7(units) 10,000 10,000
Conversioncosts $1,000,000 $1,100,000
Conversion costs per unit ofcapacity $100 $110
Selling and customer-service capacity(customers) 60 58
Total selling and customer-servicecosts $360,000 $362,500
Selling and customer-service capacity costpercustomer $6,000 $6,250
Manufacturing conversion costs in each year depend on productioncapacity defined in terms of CM7 units that can be produced.Selling and customer-service costs depend on the number ofcustomers that the customer and service functions are designed tosupport. Sting Corporation has 100 customers in 2012 and 115customers in 2013. The industry market size for high-end computermonitors increased 5% from 2012 to 2013.
Using the template table used in the Ransham Company exampleabove, build a table reconciling the operating income of 2012 tothe operating income of 2013. Out of the two basic strategies,Sting Corporationâs strategy is ________
Income Statement Amounts in 2012 | Revenue and Cost Effects of Growth Component in 2013 | Revenue and Cost Effects of Price-Recovery Component in 2013 | Cost Effect of Productivity Component in 2013 | Income Statement Amounts in 2013 | |
Revenues ($) | |||||
Costs | |||||
Operating income |