Examlex
The two graphs below show the markets for orange juice and apple juice,which are initially in equilibrium:
Operating Leverage
A measure of how revenue growth translates into growth in operating income, determined by the proportion of fixed costs in a company's cost structure.
Sales Increase
The rise in the volume or amount of sales over a specific period, reflecting business growth.
Net Operating Income
The profit generated from a company's core business operations after deducting all operating expenses except for interest and taxes.
Degree Of Operating Leverage
A financial metric that measures the sensitivity of a company's operating income to its sales. Higher leverage indicates that a small change in sales can lead to a large change in operating income.
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