Business Studies, asked by robithr7721, 1 year ago

How to calculate operating leverage from financial statements?

Answers

Answered by Anonymous
0

Steps

Calculate contribution margin. The contribution margin is total sales less variable expenses. ...

  • Calculate operating income. Operating income is the total sales less all operating expenses except interest and taxes. ...

Calculate operating leverage. Divide the contribution margin by the operating income.

Answered by AfreenMohammedi
0

Answer:

  • Calculate contribution margin. The contribution margin is total sales less variable expenses. ...
  • Calculate operating income. Operating income is the total sales less all operating expenses except interest and taxes. ...
  • Calculate operating leverage. Divide the contribution margin by the operating income.
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