Operating leverage factor

Operating leverage factor is at a given level of sales, the contribution margin divided by operating income; the operating leverage factor indicates the percentage change in operating income that will occur from a 1 % change in sales volume.

Definitions

According to Managerial Accounting by Braun, Tietz (5th edition),

Operating leverage factor. At a given level of sales, the contribution margin divided by operating income; the operating leverage factor indicates the percentage change in operating income that will occur from a 1 % change in sales volume.