Question

operating leverage formula
with sales 500000
variable cost 60%
fixed cost 120000
find operating cost ​

Answer 1

Answer:

The degree of operating leverage can also be calculated by subtracting the variable costs of sales and dividing that number by sales minus variable costs and fixed costs. For example, for the fiscal year ended 2019, Company A had sales of $55.63 billion, fixed costs of $11.28 billion, and variable costs of $30 billion.