Use the Information Below to Answer the Following Question(s)

question 69

Multiple Choice

Use the information below to answer the following question(s) .Following a strategy of product differentiation, Barry Company makes an XX 300.Barry Company presents the following data for the years 1 and 2. Barry Company produces no defective units but it wants to reduce direct materials usage per unit of XX 300 in year 2.Manufacturing conversion costs in each year depend on production capacity defined in terms of XX 300 units that can be produced.Selling and customer-service costs depend on the number of customers that the customer and service functions are designed to support.Neither conversion costs or customer-service costs are affected by changes in actual volume.Barry Company has 23 customers in year 1 and 25 customers in year 2.The industry market size for high-end appliances increased 5% from year 1 to year 2.
-________ measures the change in operating income attributable solely to changes in a company's profit margins between years one and two.

• A)The growth component
• B)The price-recovery component
• C)The productivity component
• D)The cost leadership component
• E)The strategy component

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Definitions:

Corporate Charitable Giving

The donation of funds, goods, or services to charitable causes by corporations to support various social, environmental, or community objectives.

Social Responsibility Strategy

An approach by a company to contribute to societal goals of a philanthropic, activist, or charitable nature by engaging in or supporting volunteering or ethically-oriented practices.

Corporate Misconduct

Unethical or illegal actions taken by a company or its employees, which can include fraud, insider trading, and environmental violations among others.

Mid-level Managers

Managers who report to top-level executives and oversee the activities of first-level managers, responsible for implementing organizational policies and procedures.