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More info Data table Conversion costs in each year depend on production capacity defined in terms of kits that can be processed, not the actual kits started. Selling and customer-service costs depend on the number of customers that Armond can support, not the actual number of customers it serves. Armond has 80 customers in 2016 and 85 customers in 2017. Data table ze More info Conversion costs in each year depend on production capacity defined in terms of kits that can be processed, not the actual kits started. Selling and customer-service costs depend on the number of customers that Armond can support, not the actual number of customers it serves. Armond has 80 customers in 2016 and 85 customers in 2017. Data table Data table ze f Armond Company manufactures a DVD player called Orlicon. The company sells the player to discount stores throughout the country. (Click the icon to view additional information.) Information about the current period (2017) and last period (2016) follows. Data table (Click the icon to view the information for 2017 and 2016.) More info This player is significantly less expensive than similar products sold by Armond's competitors, but the Orlicon offers just DVD playback, compared with DVD and Blu-ray playback offered by competitor Riley Manufacturing. Furthermore, the Orlicon has experienced production problems that have resulted in significant rework costs. Riley's model has an excellent reputation for quality. As a result of the actions taken, quality has significantly improved in 2017 while rework and unit costs of the Orlicon have decreased. Armond has reduced manufacturing capacity because capacity is no longer needed to support rework. Armond has also lowered the Orlicon's selling selling price to gain market share and unit sales have increased. Armond Company manufactures a DVD player called Orlicon. The company sells the player to discount stores throughout the country. (Click the icon to view additional information.) Information about the current period (2017) and last period (2016) follows. (Click the icon to view the information for 2017 and 2016.) Suppose that during 2017, the market for DVD players grew 15%. All increases in market share (that is, sales increases greater than 15\%) and decreases in the selling price of the Orlicon are the result of Armond's strategic actions. (Click the icon to view additional information.) (Click the icon to view operating income for 2016 and 2017.) (Click the icon to view the components to explain changes in operating income.) Read the requirement. First, calculate how much of the change in operating income from 2016 to 2017 is due to the industry-market-size factor, product differentiation, and cost leadership. (Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar.) How does this relate to Armond's strategy and its success in implementation? Explain. Armond successful in implementing its It It by a growth in the overall market size. strategy. The in operating income during 2017 was due to its prices to gain market share that might also benefit it in future periods. Armond's change in operating income in 2017 was

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