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An analysis of Ruthen Corporation's operating income changes between 2015 and 2016 show the following:

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An analysis of Ruthen Corporation's operating income changes between 2015 and 2016 show the following:

An analysis of Ruthen Corporation's operating income changes between 2015 and 2016 show the following:

Operating income for 2015$4,750,000
Add growth component180,000
Deduct price-recovery component(60,000)
Add productivity component285,000
Operating income for 2016$5,155,000

Required:
Is Ruthen's operating income gain consistent with the product differentiation or cost leadership strategy? Explain briefly.

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