Bernard Windows is a small company that installs windows. Its cost structure is as follows:

Selling price from each window installation $ 500

Variable cost of each window installation $ 400

Annual fixed costs $150,000

Number of window units sold 2,500

Bernard is considering changing its sales compensation for next year. Bernard would pay salespeople a 5% commission next year and reduce fixed selling costs by $62,500.

Calculate the degree of operating leverage at sales of 2,500 units under the two options. Comment briefly on the result.

Can someone help me with this question? Show your work calculations please! thanks in advance!