Operating Leverage; Operating Leverage Fields; Calculation Formulas - Casio ClassPad 330 User Manual

15-13 Operating Leverage
Operating leverage lets you calculate the degree of change in net earnings arising from a
change in sales amount.
Operating Leverage Fields
The following fields appear on the Operating Leverage calculation page.
Field
SAL Amount currently obtained from sales
VC Variable cost for this level of production
FC Fixed costs
DOL Degree of operating leverage
k Example
What is the degree of operating leverage for a company with sales ([SAL]) of $1,200,000,
variable costs ([VC]) of $600,000, and fixed costs ([FC]) of $200,000?
• You can also calculate sales amount ([SAL]), variable costs ([VC]), or fixed costs ([FC]) by
inputting the other three values and tapping the button for the result you want.
Calculation Formulas
SAL
–
DOL
=
SAL VC
–
DOL × VC
SAL
=
FC SAL FC
= –
15-13-1

Operating Leverage

VC
FC
–
DOL × FC VC
+ –
DOL
– 1
SAL VCL
–
–
DOL
Description
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