1.

Units of CX1 produced and sold

2. Selling price
3. Direct materials (square centimeters of silicon wafers)
3a. Direct materials (square centimeters/unit)
4. Direct material cost per square centimeter
5. Manufacturing processing capacity (in square centimeters of silicon wafer
6. Conversion costs (all manufacturing costs other than direct material costs
7. Conversion cost per unit of capacity (row 6 , row 5)

Growth of produced and sold:

Revenue Effect of Growth
Cost Effect of Growth for Direct Material
Cost Effect of Growth for convertion cost
Change in operating income due of growth
Price recovery:
Revenue Effect of Price Recovery
Cost Effect of Price Recovery for Direct Material
Cost Effect of Price Recovery for convertion cost
Change in operating income due of price recovery
Productivity:
Cost effect of productivity for direct material
Cost effect of productivity for convertion cost
Change in operating income due of productivity

Change due to industry market size

Change due to product differentiation
Change due to cost leadership
Change in operating income
 2016 2017 2016 2017
1,000,000 1,150,000 Revenue 23,000,000 25,300,000
23 22 Cost:
3,000,000 2,900,000 Direct material 4,200,000 4,350,000
3.00 2.52 Convertion cost 16,050,000 15,225,000
1.40 1.50 Total cost 20,250,000 19,575,000
3,750,000 3,500,000 Operating income 2,750,000 5,725,000
16,050,000 15,225,000 2,975,000 F
4.28 4.35

150,000 Units
Rp3,450,000 F Rp1,504,000 Change in operating income due to growth in industry market s
Rp630,000 U
0 Rp1,316,000 Growth in market share due to productivity improvement and st
Rp2,820,000 F decision to reduce prices

Rp1,150,000 U Rp1,150,000 Effect of strategic decision to reduce price

Rp345,000 U
Rp262,500 U Rp607,500 The effect of product differentiation on operating income
Rp1,757,500 U

Rp825,000 Rp825,000 F
Rp1,087,500 F
Rp1,912,500 F Rp1,912,500 Productivity component
Rp2,975,000

Rp1,504,000 F
Rp607,500 U
Rp2,078,500 F
Rp2,975,000
o growth in industry market size

oductivity improvement and strategic

on on operating income