(Answered) Question analysis of growth price-recovery and productivity

Accounting

Question: Analysis of growth, price-recovery, and productivity components (continuation of 12-25 and 12-26). Suppose that during 2017, the market for Stanmore's special-purpose machines grew by 3%. All increases in market share (that is, sales increases greater than 3%) are the result of Stanmore's strategic actions. Calculate how much of the change in operating income from 2016 to 2017 is due to the industry-market-size factor, product differentiation, and cost leadership. How successful has Stanmore been in implementing its strategy? Explain.

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