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Based on the income statements shown below, which division has the cost structure with the highest operating leverage? Soft Drinks Bottled Water Fruit Juices Revenue

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

Soft Drinks

Bottled Water

Fruit Juices

Revenue

$

64,000

$

64,000

$

64,000

Variable costs

(16,000

)

(8,000

)

(36,000

)

Contribution margin

48,000

56,000

28,000

Fixed costs

(40,320

)

(50,320

)

(7,680

)

Net income

$

7,680

$

5,680

$

20,320

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