Question 26

An operating income analysis of Petph Processing Company revealed the following:

Operating income for 2020 $1,100,000

Add growth component 115,000

Deduct price-recovery component (90,000)

Add productivity component 88,000

Operating income for 2021 $1,213,000

Petph 's operating income gain is consistent with the ________.

	a.	product leadership strategy
	b.	cost leadership strategy
	c.	product differentiation strategy
	d.	cost differentiation strategy
	e.	None of the answers.