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Operating Leverage

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Operating Leverage

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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.

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  • 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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