Analysis of growth, price-recovery, and productivity components (continuation of 12-19). Refer to Exercise 12-19. Suppose that the market for silk-screened T-shirts grew by 10% during 2013. All increases in sales greater than 10% are the result of Ramiro’s strategic actions.
Calculate the change in operating income from 2012 to 2013 due to growth in market size, product differentiation, and cost leadership. How successful has Ramiro been in implementing its strategy? Explain
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