Based on the income statements shown below, which division has the cost structure with the highest operating leverage?Soft Drinks$ 64,000Bottled Water Fruit Juices$ 64,000$ 64,000(16,000)(8,000)(36,000)一開48,00028,000(10,080)$ 17,920RevenueVariable costsContribution marginFixed costsNet incomeMultiple ChoiceBottled Water.Fruit Juices.Soft Drinks.(37,920)$ 10,080The three divisions have identical operating leverage.56,000(47,920)$ 8,080

Contribution margin takes into consideration only variable expenses. Variable expenses are expenses…

Based on the income statements shown below, which division has the cost structure with the highest operating leverage? Soft Drinks $ 64,000 (16,000) 48,000 (37,920) $ 10,080 Revenue Variable costs Contribution margin. Fixed costs Net income Multiple Choice Bottled Water. Fruit Juices. Soft Drinks. Bottled Water Fruit Juices $ 64,000 (36,000) 28,000 (10,080) $ 17,920 $ 64,000 (8,000) 56,000 (47,920) $ 8,080 The three divisions have identical operating leverage.

Based on the income statements shown below, which division has the cost structure with the highest operating leverage? Soft Drinks $ 64,000 (16,000) 48,000 (37,920) $ 10,080 Revenue Variable costs Contribution margin. Fixed costs Net income Multiple Choice Bottled Water. Fruit Juices. Soft Drinks. Bottled Water Fruit Juices $ 64,000 (36,000) 28,000 (10,080) $ 17,920 $ 64,000 (8,000) 56,000 (47,920) $ 8,080 The three divisions have identical operating leverage.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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