Corporate Finance PowerPoint presentation. In this presentation, we will discuss the degree of operating leverage, get ready, it’s time to take your chance with corporate finance, degree of operating leverage. Now remember, when you hear this term leverage, there’s two things that pop into your mind that generally categories of leverage. The first one is probably related to debt debt leverage or financial leverage. And the other related to the cost structure, the one that we’re going to be focusing in on here, the structure between variable costs and fixed costs. So what’s going to be the structure of the variable cost fixed costs, that’s kind of what we’re measuring here, with the degree of operating leverage the fixed costs being the thing that’s going to have more leverage related to it.
