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An Operating Income Analysis of Argon Company Revealed the Following

Question 33

Multiple Choice

An operating income analysis of Argon Company revealed the following:  Operating income for 2014 $1,207,000 Add growth component 102,000 Deduct price-recovery component (95,000)  Add productivity component 90,000 Operating income for 2015$1,304,000\begin{array}{lr}\text { Operating income for 2014 } & \$ 1,207,000 \\\text { Add growth component } & 102,000 \\\text { Deduct price-recovery component } & (95,000) \\\text { Add productivity component } & 90,000\\\text { Operating income for } 2015&\$1,304,000\end{array} Argon's operating income gain is consistent with the ________.


A) product differentiation strategy
B) product leadership strategy
C) cost differentiation strategy
D) cost leadership strategy

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