Question 1
Strategic Analysis of Profitability of King Philip Company:
| | Income
Statement
Amounts
in 2017 | Revenue and
Cost Effects
of Growth
Component
in 2017 | Revenue and
Cost Effects of
Price-Recovery
Component
in 2017 | Cost Effect of
Productivity
Component
in 2017 | Income
Statement
Amounts
in 2017 |
| Revenues ($) | 39,000 | 9000 F | 2500 U | (b) | (e) |
| Costs | 26,500 | (a) | 800 U | (c) | 30,100 |
Operating
income | 12,500 | 3800 F | 3300 U | 2400 F | (d) |
What is the operating income amount for 2017 (d)?
◦ $45,500
◦ $32,500
◦ $15,400
◦ $9600
Question 2
Strategic Analysis of Profitability of King Philip Company:
| | Income
Statement
Amounts
in 2017 | Revenue and
Cost Effects
of Growth
Component
in 2018 | Revenue and
Cost Effects of
Price-Recovery
Component
in 2018 | Cost Effect of
Productivity
Component
in 2018 | Income
Statement
Amounts
in 2018 |
| Revenues ($) | 40,000 | 13,000 F | 2400 U | (b) | (e) |
| Costs | 23,500 | (a) | 600 U | (c) | 25,900 |
Operating
income | 16,500 | 8700 F | 3000 U | 2500 F | (d) |
What is the revenue amount for 2018 (e)?
◦ $1200
◦ $40,000
◦ $50,600
◦ $24,700
Philip Miller
Tutankhamun Hunting Ostriches from His Chariot, base of the king's ostrich-feather fan.
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