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Is this the correct formula for operating leverage? Operating

 

Customer Question

Is this the correct formula for operating leverage?

Operating Leverage = [Quantity x (Price - Variable Cost per Unit)] / Quantity x (Price - Variable Cost per Unit) - Fixed Operating Cost

Thank you.

 



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Submitted: 331 days and 4 hours ago.
Category: Single Problem
Value: $30
Status: CLOSED

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Expert:  linda_us replied331 days and 4 hours ago.

Yes, this is correct.

Expert TypeMaster's Degree
Category: Single Problem
Pos. Feedback: 100.0 %
Accepts: 605
Answered: 6/28/2012

Experience: Business Analyst and Solution Consultant with over 9 years of experience.

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