Use the Information Below to Answer the Following Question(s)

question 53

Essay

Use the information below to answer the following question(s).
Following a strategy of product differentiation,Ernsting Ltd.makes high quality electronic components.Ernsting Ltd.presents the following data for the past two years relating to its XJ649 product.
Ernsting produces no defective units but it wants to reduce direct materials usage per unit in Year 2 .Manufacturing conversion costs in each year depend on production capacity defined in terms of 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.Neither conversion costs nor customer-service costs are affected by changes in actual volume.Ernsting has 60 customers in Year 1 and 66 customers in Year 2.The industry market size for the product increased 6% from Year 1 to Year 2.Of the $50 increase in unit selling price,$30 is attributable to a general price increase.
-Required:
a.What amount is the revenue effect of the growth component?
b.What amount is the cost effect of the growth component?
c.What is the net effect on operating income as a result of the growth component?

Recognize the relationship and distinctions among key motivational theories.

Understand the significance of timely and contingent reinforcement in behavior modification.

Recognize the role of punishment strategies and their appropriate application in management.

Understand the influence of environmental factors and reinforcement schedules on behavior and motivation.

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Definitions:

Correlation Coefficient

A statistical measure that indicates the extent to which two variables fluctuate together, showing the strength and direction of their relationship.

Negative Correlation

A relationship between two variables in which one variable increases as the other decreases, indicating an inverse association.

Physical Strength

Refers to the maximum amount of force that a muscle or group of muscles can exert in a single effort.

Median

A statistical measure representing the middle value in a set of data, dividing it into two equal halves.