Homework Help is Here – Start Your Trial Now!
Business
Accounting
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

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter5: Process Costing
Section: Chapter Questions
Problem 1PA: The following product Costs are available for Haworth Company on the production of chairs: direct...
See similar textbooks
icon
Related questions
Question
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
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 5 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Pricing Decisions
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
SEE MORE TEXTBOOKS