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

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.