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 |