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What is the Degree of Operating Leverage?

What is the Degree of Operating Leverage?

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The degree of operating leverage is a measure used to evaluate how a company's operating income varies with respect to a percentage change in its sales. high degree of operating leverage has high fixed costs relative to its variable cost. The degree of operating leverage is calculated by dividing contribution margin by net operating income.q

Rahul Sunny answered 2 years ago
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