Based on the Income Statements Shown Below,which Division Has the Cost

question 103

Multiple Choice

Based on the income statements shown below,which division has the cost structure with the highest operating leverage? $\begin{array}{c}\begin{array}{l}\\\text {Revenue}\\ \text {Variable costs}\\\text { Contribution margin }\\\text {Fixed costs}\\ \text {Net income}\\\end{array} \begin{array}{lll}\text { Soft Drinks }\\\$50,000\\(10,000) \\40,000\\(30,000) \\\%10,000 \end{array}\begin{array}{c}\text { Bottled Water }\\\$ 50,000 \\ (5,000) \\ 45,000 \\ (40,000) \\ \$ 5,000\end{array}\begin{array}{lll}\text { Fruit Juices }\\\$50,000\\(30,000) \\20,000\\(10,000) \\\$10,000\end{array}\end{array}$

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

Recognize the importance of environmental factors and community infrastructure in disease prevention.

Understand the historical development of public health initiatives and their impact on community health.

Analyze the role of government and non-governmental organizations in the advancement of public health.

Identify key figures and their contributions to public health and nursing.

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Definitions:

Revenue Journal

A specialized accounting journal used to record all sales transactions of a business, tracking the inflow of revenue.

Adjusting Journal Entries

Entries made in accounting records at the end of an accounting period to allocate income and expenditures to the correct period.

Special Journal

A specialized accounting journal designated for the recording of specific types of transactions, such as sales or purchases, to increase efficiency and organization.

General Journal

A primary accounting record used for recording all types of financial transactions, providing a chronological record of all business activities.