Degree of Operating Leverage Calculator

Degree of Operating Leverage Calculator

Degree of Operating Leverage Calculator

Parameter Description Example Value
Contribution Margin The total sales revenue minus variable costs. $200,000
Operating Income The company’s operating income (or EBIT). $100,000
Degree of Operating Leverage (DOL) The ratio of the contribution margin to operating income.
Formula: Contribution Margin / Operating Income
2.0

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