How can a company shift its operating leverage?

Question:

How can a company shift its operating leverage?

Net Income:

The generation of net income is aligned with the provision of best operating performance that could entice more customers to buy the products and services that the company is offering.

Answer and Explanation: 1

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The formula in computing for the operating leverage involves dividing the total contribution margin to the total fixed cost. Thus, to be able to...

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Operating Leverage: Definition, Calculation & Examples

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Chapter 1 / Lesson 12
10K

Understand what operating leverage is. Learn about operating leverage formula, how to calculate operating leverage, and review an example.


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