operating leverage

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The operating leverage is a measure of how revenue growth translates into growth in operating income. It can be a ratio of fixed costs to variable costs incurred to generate the revenue. Depending on the product, it can be generated by the ratio of preproduction costs (e.g. design widgets) versus incremental production costs (e.g. produce a widget)
operating leverage

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    operating lev·er·age

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    ôpıreytîng livırîc

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    /ˈôpərˌātəɴɢ ˈlēvərəʤ/ /ˈɔːpɜrˌeɪtɪŋ ˈliːvɜrɪʤ/