How can a company shift their operating leverageSolutionOper
How can a company shift their operating leverage?
Solution
Operating leverage refers to how strong is the balacne sheet and financial position of the company to take advantages of the opportunities. Company can shift its operating leverage on a better or lower side by:
Howver, the change in the operating leverage decreases at higher level as the change in units at higher level, the percentage change from higher base is likely to be less.
