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Operating Leverage
Operating leverage refers to the degree to which a company can increase operating income by increasing sales, highlighting the impact of fixed versus variable costs.
Operating Income
The profit realized from a business's operational activities, calculated before interest and taxes.
Operating Leverage
A measure of how revenue growth translates into growth in operating income, indicating the degree to which a company can increase profit by increasing sales.
Variable Costs
Charges that shift in alignment with the volume of production or service tasks.
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