Question: Based on the income statements shown below, which division has the cost structure with the highest operating leverage? Revenue Variable costs Contribution margin Fixed
Based on the income statements shown below, which division has the cost structure with the highest operating leverage? Revenue Variable costs Contribution margin Fixed costs Net income $ 45,000 $ 45,000 Soft Drinks Bottled Water Fruit Juices $ 45,000 (11,000) (5,500) (31,000) 34,000 39,500 14,000 (26,520) (36,520) (7,480) $ 7,480 $ 2,980 $ 6,520 Multiple Choice Bottled Water. Fruit Juices. Soft Drinks. The three divisions have identical operating leverage.
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