Based on the income statements shown below, which division has the cost structure with the highest operating leverage? SoftDrinksBottledWaterFruitJuicesRevenue $50,000 $50,000 $50,000 Variable costs (10,000) 5,000 (30,000) Contribution margin 40,000 45,000 20,000 Fixed costs (30,000) 40,000 (10,000) Net income $10,000 $5,000 $10,000
A. Fruit Juices.
B. Bottled Water.
C. Soft Drinks.
D. The three divisions have identical operating leverage.
Answer: B
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On January 1, 2021, Nana Company paid $100,000 for 8,000 shares of Papa Company's common stock. The ownership in Papa Company is 10%. Papa reported net income of $52,000 for the year ended December 31, 2021. The fair value of the Papa stock on that date was $45 per share. What amount will be reported in the balance sheet of Nana Company for the investment in Papa at December 31, 2021?
A. $315,600. B. $300,000. C. $360,000. D. $284,400.
Which of the following is not considered a possible problem in the quantitative analysis approach?
A) validity of the data B) lack of commitment C) resistance to change D) subjective solutions E) hard-to-understand mathematics
Estimated liabilities commonly arise from all of the following except:
A. Warranties. B. Unearned revenues. C. Vacation benefits. D. Employee benefits. E. Income taxes.
In general, a project's cash flows will fall into one of three categories. What are these categories?
What will be an ideal response?