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Manero Company included the following information in its annual report: 2019 2018 2017 Sales $ 178,400 $ 162,500 $ 155,500 Cost of goods sold 115,000
Manero Company included the following information in its annual report:
2019 | 2018 | 2017 | |||||||||
Sales | $ | 178,400 | $ | 162,500 | $ | 155,500 | |||||
Cost of goods sold | 115,000 | 102,500 | 100,000 | ||||||||
Operating expenses | 50,000 | 50,000 | 45,000 | ||||||||
Operating income | 13,400 | 10,000 | 10,500 |
In comparison to year 2018, the increase in operating income of 2019 was primarily caused by (ignore taxes):
Multiple Choice
A. the effect of sales growth.
B. the answer cannot be derived from the information provided.
C. the effect of cost of goods sold growth.
D. the effect of margin growth.
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