An analysis of Armidale Corporations operating income changes between 2016 and 2017 show the following:

Operating income for 2016 $1,000,000

Add growth component 50000

Deduct price recovery component (30000)

Add Productivity component 120000

Operating income for 2017 $1,140,000

Required: Is Armidale Corporations operating income gain from 2016 to 2017 consistent with the product differentiation or cost leadership strategy? Explain briefly. (Please note that the students donot need to do any calculations or use any formulae to answer this question).