Which of the following is concerned with the change in operating profit as a result of a change in unit volume?
A) Financial leverage
B) Break-even point
C) Operating leverage
D) Combined leverage

Question

Quizplus · Accepted Answer

Operating leverage refers to the extent to which fixed costs are used in a company's operations. It measures the change in operating profit as a result of changes in sales or unit volume. Specifically, it represents the percentage change in operating profit that occurs due to a one percent change in sales.

Which of the Following Is Concerned with the Change in Operating