Degree of Operating Leverage Definition
Degree of Operating Leverage Definition:
A measure, at a given level of sales, of how a percentage change in sales volume will affect profits. The degree of operating leverage is computed by dividing contribution margin by net income.
Other Related Accounting Articles:
- Operating Leverage Definition
- Cost Volume Profit (CVP) Formulas
- Positive and Negative Operating Leverage Definition
- Contribution Margin (CM) Ratio Definition
- Sales Quantity Variance
- What is Sales Volume Variance?
- Margin Definition
- Contribution Margin Definition
- Profit Velocity Analysis
- Cost Volume Profit Analysis
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