The operating leverage shows how far the company's actual sales or units are from the break-even point.

Name: The operating leverage shows how far the company's actual sales or units are from the break-even point.
Brand: Quizplus
Rating: 4.7 (58 reviews)

Question

Quizplus · Accepted Answer

Operating leverage measures the degree to which a company's net income can be affected by a change in sales, showing the proportion of fixed costs in a company's cost structure, not the distance from the break-even point.

The Operating Leverage Shows How Far the Company's Actual Sales