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

Question

Quizplus · Accepted Answer

The operating income gain is consistent with the cost leadership strategy, as the productivity component is positive, indicating efficiency improvements and cost reductions.

An Operating Income Analysis of Argon Company Revealed the Following