An analysis of Kookaburra Ltd's operating profit for the last two years showed the following:
$$\begin{array} { | l | r | }
\hline \text { Operating profit for } 2017 & \$ 600000 \
\hline \text { Add growth component } & 15000 \
\hline \text { Add price-recovery component } & 100000 \
\hline \text { Deduct productivity component } & ( 8000 ) \
\hline \text { Operating profit for } 2018 & \$ 707000 \
\hline
\end{array}$$
This gain in operating profit is consistent with a:

Question

An analysis of Kookaburra Ltd's operating profit for the last two years showed the following:
$$\begin{array} { | l | r | } 
\hline \text { Operating profit for } 2017 & \$ 600000 \
\hline \text { Add growth component } & 15000 \
\hline \text { Add price-recovery component } & 100000 \
\hline \text { Deduct productivity component } & ( 8000 ) \
\hline \text { Operating profit for } 2018 & \$ 707000 \
\hline
\end{array}$$
This gain in operating profit is consistent with a:

Quizplus · Accepted Answer

The increase in operating profit implies that Kookaburra Ltd has been able to differentiate its products in the market, leading to increased sales and profits. A re-engineering strategy would involve a complete overhaul of business processes and may not necessarily guarantee an increase in profits. A cost leadership strategy would focus on reducing costs to increase profits, while downsizing strategy would involve reducing the size of the business to increase profitability.

An Analysis of Kookaburra Ltd's Operating Profit for the Last