Question: can you explain these 2 questions please... Why are the answers D and A ? 9. Even in the face HAPTER 70. An operating income

can you explain these 2 questions please... Why are the answers

can you explain these 2 questions please... Why are the answers D and A ?

9. Even in the face HAPTER 70. An operating income analysis of Sara McCullough Incorporated revealed the following: /FAL Operating income for 2003 Add growth component Deduct price-recovery component Add productivity component Operating income for 2004 $500,000 25,000 (15,000) 60,000 $570,000 McCullough's operating income gain is consistent with the a. product differentiation strategy b. downsizing strategy c. reengineering strategy d. cost leadership strategy Answer: d Difficulty: 2 Objective: 4 71. An operating income analysis of Deb Schmidt Incorporated revealed the following. Operating income for 2003 Add growth component Add price-recovery component Deduct productivity component Operating income for 2004 $500,000 15,000 100,000 (8,000 $607.000 Schmidt's operating income gain is consistent with the a. product differentiation strategy b. downsizing strategy c. reengineering strategy. d. cost leadership strategy Objective: 4 Difficulty:2 Answer: a

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