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

Templeton is considering changing its sales compensation for next year. Templeton would pay salespeople a 2% commission next year and reduce fixed selling costs by $ 64,500.

Calculate the degree of operating leverage at sales of 6,900 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