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An operating income analysis of Sara McCullough Incorporated revealed the following: Operating...

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Accounting

An operating income analysis of Sara McCullough Incorporated revealed the following:

Operating income for 2005 $500,000

Add growth component 25,000

Deduct price-recovery component (15,000)

Add productivity component 60,000

Operating income for 2006 $570,000

a.) McCulloughs operating income gain is consistent with the:

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