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2.An operating income analysis of Fast Processing Company revealed the following:         Operating income for 2017                &nbs

2.An operating income analysis of Fast Processing Company revealed the following:

        Operating income for 2017                           $1,207,000

        Add growth component                                      102,000

        Deduct price-recovery component                  (95,000)

        Add productivity component                              90,000

        Operating income for 2018                           $1,304,000

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

A.

product differentiation strategy

B.

product leadership strategy

C.

cost differentiation strategy

D.

cost leadership strategy

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Answer #1

Option D is correct . Fast's operating income gain is consistent with the cost leadership strategy

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