Manero Company included the following information in its annual report: Sales Cost of goods sold Operating expenses Operating income 20X3 $178,400 115,000 50,000 13,400 Multiple Choice 20X2 20X1 $162,500 $155,500 102,500 100,000 50,000 45,000 10,000 10,500 In comparison to year 20X2 the increase in operating income of 20X3 was primarily caused by (ignore taxes):

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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7:33
Manero Company included the following information in its annual report:
Sales
Cost of goods sold
Operating expenses
Operating income
Multiple Choice
20X3
$178,400
115,000
50,000
13,400
O
In comparison to year 20X2 the increase in operating income of 20X3 was primarily caused by (ignore taxes):
the effect of margin growth.
20X2
$162,500
102,500
50,000
10,000
the effect of sales growth.
20X1
$155,500
100,000
45,000
10,500
the answer cannot be derived from the information provided.
the effect of cost of goods sold growth.
Transcribed Image Text:7:33 Manero Company included the following information in its annual report: Sales Cost of goods sold Operating expenses Operating income Multiple Choice 20X3 $178,400 115,000 50,000 13,400 O In comparison to year 20X2 the increase in operating income of 20X3 was primarily caused by (ignore taxes): the effect of margin growth. 20X2 $162,500 102,500 50,000 10,000 the effect of sales growth. 20X1 $155,500 100,000 45,000 10,500 the answer cannot be derived from the information provided. the effect of cost of goods sold growth.
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