Marston Corporation makes a special-purpose machine, D4H, used in the textile industry. Marston has designed the D4H machine for 2017 to be distinct from its competitors. It has been generally regarded as a superior machine. Marston presents the following data for 2016 and 2017. (Click the icon to view the data.) (Click the icon to view additional information.) Read the requirements. Requirement 1. Calculate the operating income of Marston Corporation in 2016 and 2017. 2016 Revenues Costs Direct material costs Manufacturing conversion costs Selling and customer service costs Total costs Operating income Requirements 1. Calculate the operating income of Marston Corporation in 2016 and 2017. 2. Calculate the growth, price-recovery, and productivity components that explain the change in operating income from 2016 to 2017. 3. Comment on your answer in requirement 2. What do these components indicate? Print Done More Info has designed the D4H machine for Marston produces no defective machines, but it wants to reduce direct materials usage per D4H machine in 2017. Conversion costs in each year depend on production capacity defined in terms of D4H units that can be produced, not the actual units produced. Selling and customer-service costs depend on the number of customers that Marston can support, not the actual number of customers it serves. Marston has 77 customers in 2016 and 82 customers in 2017. -X Print Done 2016 2017 200 225 37,000 $ 320,000 1. Units of D4H produced and sold 2. Selling price 3. Direct materials (kilograms) 4. Direct material cost per kilogram 5. Manufacturing capacity in units of D4H 6. Total conversion costs 7. Conversion cost per unit of capacity (row 6/row 5) 8. Selling and customer-service capacity 7.25 $ 250 2,025,000 $ 8.100 $ 39,000 325,000 7.50 250 2,050,000 $ 8,200 95 customers 950,000 9. Total selling and customer-service costs 100 customers 1,100,000 $ 11,000 $ $ $ 10. Selling and customer-service capacity per customer (row 9/row 8) 10,000 Print Done