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Drayton Windows is a small company that installs windows. Its cost structure is as follows: (Click the icon to view the cost structure.) Drayton is
Drayton Windows is a small company that installs windows. Its cost structure is as follows: (Click the icon to view the cost structure.) Drayton is considering changing its sales compensation for next year. Drayton would pay salespeople a 4% commission next year and reduce fixed selling costs by $67,000. Calculate the degree of operating leverage at sales of 2,350 units under the two options. Comment briefly on the result. Data table Begin by selecting the labels for the degree of operating leverage formula. Next, complete the following table in order to calculate the degree of operating leverage. (Round the degree of operating leverage Comment briefly on the result. (Enter the amounts to two decimal places.) These results indicate that, when sales are 2,350 units, a 1\% change in sales and contribution margin will result in a % change in operating income for Option 1. For Option 2, a 1\% change in sales and contribution margin will result in a % change in operating income
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