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

question 158

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:
Present the following,
a.The change in operating income from cost leadership.
b.The change in operating income due to industry wide effects.
c.The effect of product differentiation on operating income and a summarization of the change in operating income between Year 1 to Year 2.

Analyze the influence of social factors (such as capital, social norms, and access to healthcare) on health and illness.

Grasp the interactionist approach to health, including how illness is experienced and interpreted.

Appreciate the impact of aging and chronic health conditions on individual health.

Recognize the role of medicalization in contemporary society, especially concerning women's health and reproduction.

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Definitions:

Favorable Response

A positive or agreeable answer in reaction to a request, proposal, or situation.

Claim Message

A communication that asserts a right, demand, or request, typically in the context of business or legal affairs.

Routine Messages

Standardized communications that cover day-to-day operations and information exchange within organizations.

Organized Strategy

A planned, systematic approach designed to achieve a set of objectives in an effective and efficient manner.