Sting Corporation makes a high-end computer monitor, CM7. Sting Corporation pres

Question

Sting Corporation makes a high-end computer monitor, CM7. Sting Corporation presents the following data for the years 2012 and 2013: Manufacturing conversion costs in each year depend on production capacity defined in terms of CM7 units that can be produced. Selling and customer-service costs depend on the number of customers that the customer and service functions are designed to support. Sting Corporation has 100 customers in 2012 and 115 customers in 2013. The industry market size for high-end computer monitors increased 5% from 2012 to 2013. Using the template table used in the Ransham Company example above, build a table reconciling the operating income of 2012 to the operating income of 2013. Out of the two basic strategies, Sting Corporation's strategy is

Explanation / Answer

The calculations can be seen once it is pasted to an excel sheet. Since the calculation needs time to understand, it is not easy to write down each line. It is seen in the excel file.

Inc ome Statement amount in 2012 Revenue and cost effect of growth component 2013 Revenue and cost effect of price recovery component 2013 Cost effect of productivity component 2013 Income Statement amount 2013 Revenue 2000000 200000 220000 2420000 Costs 1700000 200000 145250 -45000 2000250 Operating Income 300000 0 74750 419750

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.