Consider the financial data presented for Trinity.:
Units produced 1,000,000 1,250,000
Selling price $25 $22
Direct materials 3,000,000 2,900,000
DM cost per centimeter $1.60 $1.90
Manufacturing process capacity 3,750,000 3,500,000
Conversion costs* $18,050,000 $17,225,000
Conversion cost per unit of capacity $4.28 $4.35
* Conversion cost = labor and manufacturing overhead.
Complete the following statement to calculate Operating income for each year:
Change in Operating Income
. 1. What strategy did Trinity employ in 2017?
A. Cost leadership B. Balanced scorecard
C. Product differentiation D. Trial-and–error
2. Was the strategy employed successful?
3. What factors above lead you to the conclusions in questions 1 & 2?
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