Answer: Schlictor's operating leverage when 2000 units are sold is 3.
The degree of operating leverage is used to calculate the change in operating income with respect to a percentage change in sales.
We can calculate operating leverage of a firm with the help of the following formula:
[tex]Degree of operating leverage = \frac{Sales - Variable Costs}{Sales - (Variable costs + Fixed Costs)}[/tex]
Substituting the values from the question we get
[tex]Degree of operating leverage = \frac{(50 * 2000) - (50*0.40*2000)}{[50*2000] - [(50*0.4*2000) + 40000]}[/tex]
[tex]Degree of operating leverage = \frac{100000 - 40000}{[100000] - [(40000) + 40000]}[/tex]
[tex]Degree of operating leverage = \frac{60000}{20000}[/tex]
[tex]Degree of operating leverage = 3[/tex]
