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Fluctuating sales
Assessing Profit Sensitivity to Sales Changes via Operating Leverage
November 30, 2023
What role does Operating Leverage play in determining a company's profitability during periods of fluctuating sales?
Operating leverage intensifies the impact of fluctuating sales on a company's profitability. High fixed costs result in magnified changes in profits with sales variations, affecting overall financial performance.
Tags : Operating Leverage , Profitability , Fluctuating Sales