Economics
Degree of operating leverage
Degree of operating leverage is a financial measure of value, return, cost, or cash flow.
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DOL = CM / OP
- 01Given
- 02Calculation
- 03Answer
What it means
Degree of operating leverage is a financial measure of value, return, cost, or cash flow.
How it works and where it is used
Use this calculation for finding break-even points, safety margins, and sales volume required for target profit.