Operating Leverage
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Operating Leverage: Definition and Examples
Operation leverage takes into account a company’s fixed costs as a percentage of their total costs. Learn more about business terms through storyboards!
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Storyboard Description
Storyboard That's Illustrated Guide to Business Terms - Operating Leverage | Operation leverage takes into account a company’s fixed costs as a percentage of their total costs. It is usually used for calculating a company’s break-even point on sales.
Storyboard Text
- OPERATING LEVERAGE Operation leverage takes into account a company’s fixed costs as a percentage of their total costs. It is usually used for calculating a company’s break-even point on sales.
- Breakeven Point
- Total Revenue
- Total Costs
- Fixed Costs
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