Reference no: EM132467286

Manero Company included the following information in its annual report:

                                              2019           2018               2017

Sales                         $178,400      $162,500           $155,500

Cost of goods sold        115,000        102,500           100,000

Operating expenses        50,000        50,000             45,000

Operating income        13,400         10,000              10,500

Question 1: In comparison to year 2018, the increase in operating income of 2019 was primarily caused by the effect of margin increase of (ignore taxes):

Group of answer choices

• $978.
• $1,194
• $2,422
• $3,400.