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The concept of operating leverage, providing examples and formulas to calculate it. Operating leverage refers to the degree to which a company's operating income is affected by changes in sales. the difference between high and low operating leverage, its impact on a company, and its relevance to investment strategies.
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But they all relate to fixed vs. variable costs As sales grow , how much trickles down into OpInc?
Any type of leverage higher risk , higher potential rewards
Problem: Companies don’t spell this out