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Operating Leverage

Last modified by
on
Jul 24, 2020, 6:28:07 PM
Created by
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Nov 25, 2015, 10:50:51 AM
DOL=Percentage Change in Operating IncomePercentage Change in Sales
% Change in Operating Income
% Change in Sales
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This equation is used to compute the percentage change in operating income that occurs as a result of the percentage change in sales.

REFERENCE

Philip J. Adelman, Alan M. Marks.(2009). Entrepreneurial Finance. 5th Edition. Prentice Hall.


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