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The formula used to calculate the degree of operating leverage is?

Accounting Financial Analysis Financial Management
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Question added by Ahmed Abdi Mahad , Director of Internal Auditing Directorate , Jigjiga University
Date Posted: 2015/05/12
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Saidul Alam
by Saidul Alam , Accountant , Akhtar Al Balushi Trad. & Cont. L.L.C

Degree of operating leverage =     change in operating income  /  changes in sales

 

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........Or                     Total Contribution Margin/(Total Contrbuition Margin --- Fixed Costs)

 

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