Operation leverage takes into account a company’s fixed costs as a percentage of their total costs. Learn more about business terms through storyboards!
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
Slide: 1
Total Revenue
Breakeven Point
Total Costs
Fixed Costs
OPERATING LEVERAGEOperation 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.
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