a) What is the degree of operating leverage? 

b) What is the accounting break-even point?

Sales Less: Variable Cost of Goods Sold Depreciation Other fixed costs of goods sold Gross Margin Less: Selling and Administrative Expenses Operating Profit 2021 $50,000 20,000 5,000 4,000 21,000 2,500 18,500 * Note: $2,000 fixed administrative expense and selling expense equal to 1% of sales a) What is the degree of operating leverage? b) What is the accounting break-even point? 2020 $40,000 16,000 5,000 4,000 15,000 2,400 12,600