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Burlington Windows is a small company that installs windows. Its cost structure is as follows: (Click the icon to view the cost structure.) Burlington is
Burlington Windows is a small company that installs windows. Its cost structure is as follows: (Click the icon to view the cost structure.) Burlington is considering changing its sales compensation for next year. Burlington would pay salespeople a 6% commission next year and reduce fixed selling costs by $65.000 Calculate the degree of operating leverage at sales of 8,100 units under the two options. Comment briefly on the result. Begin by selecting the labels for the degree of operating leverage formula. Degree of operating leverage Data Table Selling price from each window installation 750 Variable cost of each window installation S700 Annual fixed costs Number of window units sold Target operating income 165,000 8,100 $ 240,000 PrintDone
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