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Operating Leverage

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Operating Leverage
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Operating Leverage

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 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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