An analysis of Gardner Corporation's operating income changes between Year 1 and Year 2 show the
following:
Operating income for Year 1 $1,000,000
Add growth component 50,000
Deduct price-recovery component (30,000)
Add productivity component 120,000
Operating income for Year 2 $1,140,000
Required:
Is Gardner's operating income gain consistent with the product differentiation or cost leadership strategy? Explain briefly.

Question

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The Answer of An analysis of Gardner Corporation's operating income changes between Year 1 and Year 2 show the
following:
Operating income for Year 1 $1,000,000
Add growth component 50,000
Deduct price-recovery component (30,000)
Add productivity component 120,000
Operating income for Year 2 $1,140,000
Required:
Is Gardner's operating income gain consistent with the product differentiation or cost leadership strategy? Explain briefly.

An Analysis of Gardner Corporation's Operating Income Changes Between Year