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

question 83

Essay

An analysis of Didgeridoo Corporation's operating profit changes between 2017 and 2018 show the following:
$$\begin{array} { l r } \text { Operating profit for } 2017 & \$ 1000000 \\\text { Add growth component } & 30000 \\\text { Add price-recovery component } & 200000 \\\text { Deduct prod uctivity component } & ( 10000 ) \\\text { Operating profit for } 2018 & \$ 1220000\end{array}$$
Required:
Is Didgeridoo's operating profit gain consistent with the product differentiation or cost leadership strategy? Explain briefly.
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Definitions:

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