× Didn't find what you were looking for? Ask a question
Top Posters
Since Sunday
s
3
v
3
p
3
m
2
s
2
d
2
N
2
d
2
e
2
s
2
s
2
e
2
Home Q & A Board Other Fields Homework Help Business Economics
New Topic  
ruskin ruskin
wrote...
Posts: 664
Rep: 12 1
6 years ago
An analysis of Louis Brown Corporation's operating income changes between year 1 and year 2 show the following:

Operating income for Year 1   $1,000,000
Add growth component   30,000
Add price-recovery component   200,000
Deduct productivity component     (10,000)
Operating income for Year 2   $1,220,000

Required:
Is Louis Brown's operating income gain consistent with the product differentiation or cost leadership strategy? Explain briefly.
Textbook 
Cost Accounting: A Managerial Emphasis, Canadian Edition

Cost Accounting: A Managerial Emphasis, Canadian Edition


Edition: 7th
Authors:
Read 83 times
1 Reply

Related Topics

Replies
wrote...
#1
6 years ago
Louis Brown's operating income gain is consistent with the product differentiation strategy since the increase in operating income was driven by the $200,000 gain in the price-recovery component. It appears that Brown's superior quality stimulated slight growth and allowed it to charge a price premium for its products.
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  916 People Browsing
 119 Signed Up Today
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 154
  
 104
  
 995
Your Opinion
Which country would you like to visit for its food?
Votes: 262
Previous poll results: Who will win the 2024 president election?