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Abhishek Jhunjhunwala

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2 years ago

What Is Operating Leverage?

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Muskan Anand

2 years ago

it is a leverage which refers to the enhancement of profits because there is a fixed operating cost which is involved with each and every component. When the sales increases fixed cost doesn't increase and it results in higher profits. Higher fixed expenses results in higher operating leverage which leads to higher business risk.

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