An Analysis of Baker,Inc This Gain in Operating Income Is Consistent with a ________

question 168

Multiple Choice

An analysis of Baker,Inc.'s operating income for the last two years showed the following: $$\begin{array} { | l | r | } \hline \text { Operating income for } 2011 & \$ 1,200,000 \\\hline \text { Add growth component } & 30,000 \\\hline \text { Add price-recovery component } & 200,000 \\\hline \text { Deduct productivity component } & ( 16,000 \\\hline \text { Operating income for 2012 } & \$ 1,414,000 \\\hline\end{array}$$ This gain in operating income is consistent with a ________.

• A) downsizing strategy
• B) reengineering strategy
• C) product differentiation strategy
• D) cost leadership strategy

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