Operating Leverage Calculation for ABC Corporation

ABC Corporation has recently experienced a decline in its sales revenue due to unfavorable market conditions. The following details have been provided regarding its fixed and variable costs:

• Fixed Costs: $500,000 per year
• Variable Costs: $30 per unit
• Selling Price per Unit: $50

Assuming the company sells 20,000 units in a year, what will be the operating leverage at this sales level? Operating Leverage is a measure of how much a company's operating income changes with respect to changes in sales volume.