(3) Suppose that the market for silk-screened T-shirts grew by 10% during 2019. All increases in sales greater than 10% are the result of Hulk's strategic actions. Calculate the change in operating income from 2018 to 2019 due to growth in market size, product differentiation, and cost leadership. How successful has Hulk been in implementing its strategy? Explain. (4%)

4. Taipei Company, a manufacturer of coffee tables, predicts that it will purchase 240,000 units of red oaks next year. Taipei Company estimates that 20,000 units of red oaks will be required each month. A supplier quotes a price of $10 per unit of red oak. The supplier also offers a special discount option: If all 240,000 units of red oaks are purchased at the start of the year, a discount of 2% off the $10 price will be given. Taipei Company can invest its cash at 10% per year. It costs Taipei Company $300 to place each purchase order. Required: (1) What is the opportunity cost of interest forgone from purchasing all 240,000 units at the start of the year instead of in 12 monthly purchases of 20,000 units per order? (8%)

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