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Degree of Operating Leverage

Degree of Operating Leverage
The degree of operating leverage may be defined as percentage change in the profits resulting from a percentage change in the sales.

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It can be calculated with the help of the following formula:

DOL = Percentage change in profits / Percentage change in sales

Degree of Operating Leverage Degree of Operating Leverage Reviewed by Blog Editor on Tuesday, May 30, 2017 Rating: 5

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