Strategic Analysis of Profitability of Ransham Company:
Income
Statement
Amounts
in 2019
Revenue and
Cost Effects
of Growth
Component
in 2020
Revenue and
Cost Effects of
Price-Recovery
Component
in 2019
Cost Effect of
Productivity
Component
in 2020
Income
Statement
Amounts
in 2020
Revenues ($)
34,000
10,000 F
1,000 U
(b)
(e)
Costs
23,500
(a)
500 U
(c)
26,100
Operating income
10,500
5,500 F
1,500 U
2,400 F
(d)
What is the cost effect of the growth component (a)?