An analysis of Yarra Corporation's operating profit changes between 2017 and 2018 show the following:
$$\begin{array} { l r }
\text { Operating profit for } 2017 & \$ 1000000 \
\text { Add growth component } & 50000 \
\text { Ded uct price-recovery component } & ( 30000 ) \
\text { Add productivity component } & 120000 \
\text { Operating profit for } 2018 & \$ 1140000
\end{array}$$
Required:
Is Yarra's operating profit gain consistent with the product differentiation or cost leadership strategy? Explain briefly.
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Question

An analysis of Yarra Corporation's operating profit changes between 2017 and 2018 show the following:
 $$\begin{array} { l r } 
\text { Operating profit for } 2017 & \$ 1000000 \
\text { Add growth component } & 50000 \
\text { Ded uct price-recovery component } & ( 30000 ) \
\text { Add productivity component } & 120000 \
\text { Operating profit for } 2018 & \$ 1140000
\end{array}$$ 
Required:
Is Yarra's operating profit gain consistent with the product differentiation or cost leadership strategy? Explain briefly.
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Quizplus · Accepted Answer

The Answer of An analysis of Yarra Corporation's operating profit changes between 2017 and 2018 show the following:
 $$\begin{array} { l r } 
\text { Operating profit for } 2017 & \$ 1000000 \
\text { Add growth component } & 50000 \
\text { Ded uct price-recovery component } & ( 30000 ) \
\text { Add productivity component } & 120000 \
\text { Operating profit for } 2018 & \$ 1140000
\end{array}$$ 
Required:
Is Yarra's operating profit gain consistent with the product differentiation or cost leadership strategy? Explain briefly.
_____________________________________________________________________________________________
_____________________________________________________________________________________________

An Analysis of Yarra Corporation's Operating Profit Changes Between 2017