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  3. \begin{tabular}{|lrr|} \hline selling price from e

\begin{tabular}{|lrr|} \hline Selling price from each window installation & $ & 600 \\ Variable cost...

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Accounting

imageimage \begin{tabular}{|lrr|} \hline Selling price from each window installation & $ & 600 \\ Variable cost of each window installation & $ & 400 \\ Annual fixed costs & $195,000 \\ Number of window units sold & & 1,575 \\ \hline \end{tabular} Cali Windows is a small company that installs windows. Its cost structure is as follows: (Click the icon to view the cost structure.) Cali is considering changing its sales compensation for next year. Cali would pay salespeople a 2% commission next year and reduce fixed selling costs by $67,500. Calculate the degree of operating leverage at sales of 1,575 units under the two options. Comment briefly on the result. Next, complete the following table in order to calculate the degree of operating leverage. (Round the degree of operating leverage to two decimal places.) Comment briefly on the result. (Enter the amounts to two decimal places.) These results indicate that, when sales are 1,575 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

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