How a firm could increase its operating leverage


Question: What would be the impact on a firm's profits by increasing its Operating Leverage if:

- the firm was operating to the right of its break-even point?

- the firm was operating to the left of its break-even point?

What is meant by Operating Leverage? Give a specific example of how a firm could increase its operating leverage.

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Finance Basics: How a firm could increase its operating leverage
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