Based on the income statements shown below, which division has the cost structure with the highest operating leverage?

Multiple Choice

Soft Drinks.

Fruit Juices.

Bottled Water.

The three divisions have identical operating leverage.

Revenue Variable costs Contribution margin Fixed costs Net income Soft Drinks $50,000 10,000 40,000 30,000 $10,000 Bottled Water $50,000 5000 45,000 40,000 $5,000 Fruit Juices $50,000 30,000 20,000 10,000 $10,000