2a. An analysis of Revere Beach Corporation's operating income changes between 2021 and 2022 show the following: Operating income for 2021 $4,750,000 Add growth component 180,000 Deduct price-recovery component (60,000) Add productivity component 285,000 Operating income for 2022 $5,155,000 Required: Is Revere's operating income gain consistent with the product differentiation or cost leadership strategy? Explain briefly. 2b. An analysis of Terbolt Corporation's operating income changes between 2021 and 2022 show the following: Operating income for 2021 $4,750,000 Add growth component 75,000 Add price-recovery component 398,000 Deduct productivity component (50,000) Operating income for 2022 $5,173,000 Required: Is Terbolt's operating income gain consistent with the product differentiation or cost leadership strategy? Explain briefly.
2a. An analysis of Revere Beach Corporation's operating income changes between 2021 and 2022 show the following:
Operating income for 2021 $4,750,000
Add growth component 180,000
Deduct price-recovery component (60,000)
Add productivity component 285,000
Operating income for 2022 $5,155,000
Required:
Is Revere's operating income gain consistent with the product differentiation or cost leadership strategy? Explain briefly.
2b. An analysis of Terbolt Corporation's operating income changes between 2021 and 2022 show the following:
Operating income for 2021 $4,750,000
Add growth component 75,000
Add price-recovery component 398,000
Deduct productivity component (50,000)
Operating income for 2022 $5,173,000
Required:
Is Terbolt's operating income gain consistent with the product differentiation or cost leadership strategy? Explain briefly.
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