A company has established a strategic initiative to increase operating income by increasing market share through being the lower-cost provider. Assuming the total market size remains the same, and based on the information provided below, has the company achieved the stated objectives?

	Current Year	Next Year
Revenues	$325,000	$325,000
Cost of goods sold	152,000	146,000
Gross margin	$173,000	$179,000
Operating costs
Marketing	100,000	100,000
Administrative	50,000	50,000
Operating income	$ 23,000	$ 29,000
Units sold	$ 1,000	$ 1,000

A.

No, because it does not appear that the company has increased market share.

B.

Yes, because the company was able to lower costs and increase operating income.

C.

Yes, because the statements show a reduced cost of goods sold.

D.

No, because the company did not reduce marketing and administrative costs.