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| Teaching Since: | May 2017 |
| Last Sign in: | 402 Weeks Ago |
| Questions Answered: | 66690 |
| Tutorials Posted: | 66688 |
MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Strategic analysis of operating income.
| Â | Â |
2010 |
2011 |
| Â |
Number of jobs billed |
60 |
70 |
| Â |
Selling price per job |
$50,000 |
$48,000 |
| Â |
Software-implementation labor-hours |
30,000 |
32,000 |
| Â |
Cost per software-implementation labor-hour |
$60 |
$63 |
| Â |
Software-implementation support capacity (number of jobs it can do) |
90 |
90 |
| Â |
Total cost of software-implementation support |
$360,000 |
$369,000 |
| Â |
Software-implementation support-capacity cost per job (row 6 ÷ row 5) |
$4,000 |
$4,100 |
1. Calculate the operating income of Westlake Corporation in 2010 and 2011.
2. Calculate the growth, price-recovery, and productivity components that explain the change in operating income from 2010 to 2011.
3. Comment on your answer in requirement 2. What do these components indicate?
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