An analysis of Revere Beach Corporation's operating income changes between 2017 and 2018 show the following:
$\begin{array}{ll}
\text { Operating income for } 2017 & \$ 4,750,000 \
\text { Add growth component } & 180,000 \
\text { Deduct price-recovery component } & (60,000) \
\text { Add productivity component } & \underline{285,000} \
\text { Operating income for } 2018 &\underline{\$ 5,155,000}
\end{array}$
Required:
Is Revere's operating income gain consistent with the product differentiation or cost leadership strategy? Explain briefly.

Question

An analysis of Revere Beach Corporation's operating income changes between 2017 and 2018 show the following:
 $\begin{array}{ll}
\text { Operating income for } 2017 & \$ 4,750,000 \
\text { Add growth component } & 180,000 \
\text { Deduct price-recovery component } & (60,000) \
\text { Add productivity component } & \underline{285,000} \
\text { Operating income for } 2018 &\underline{\$ 5,155,000}
\end{array}$ 
Required:
Is Revere's operating income gain consistent with the product differentiation or cost leadership strategy? Explain briefly.

Quizplus · Accepted Answer

The Answer of An analysis of Revere Beach Corporation's operating income changes between 2017 and 2018 show the following:
 $\begin{array}{ll}
\text { Operating income for } 2017 & \$ 4,750,000 \
\text { Add growth component } & 180,000 \
\text { Deduct price-recovery component } & (60,000) \
\text { Add productivity component } & \underline{285,000} \
\text { Operating income for } 2018 &\underline{\$ 5,155,000}
\end{array}$ 
Required:
Is Revere's operating income gain consistent with the product differentiation or cost leadership strategy? Explain briefly.

An Analysis of Revere Beach Corporation's Operating Income Changes Between