Based on the Income Statements Shown Below, Which Division Has

question 36

Multiple Choice

Based on the income statements shown below, which division has the cost structure with the highest operating leverage?

• A) Bottled Water.
• B) Fruit Juices.
• C) Soft Drinks.
• D) The three divisions have identical operating leverage.

---

Definitions:

Photoperiodism

The physiological reaction of organisms to the length of day or night, often affecting flowering and reproduction.

Long-day Plant

Plants that flower only after being exposed to light periods longer than a certain critical length.

Sunflower

A large plant belonging to the daisy family, known for its large flowering heads and edible seeds.

Shade Avoidance

A growth response of plants to reduce shading by neighboring plants, often resulting in elongation of stems and leaves to reach light.