Explore BrainMass

Explore BrainMass

    Operating leverage

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    How do fixed costs create operating leverage?

    © BrainMass Inc. brainmass.com May 24, 2023, 1:28 pm ad1c9bdddf
    https://brainmass.com/business/accounting/23090

    Solution Preview

    Operating leverage is concerned with the relative mix of fixed costs and variable costs in an organization. It is sometimes possible to trade off fixed costs for variable costs. As the variable costs ...

    Solution Summary

    Operating leverage is correlated with fixed costs.

    $2.49

    ADVERTISEMENT