Operating Leverage - Free Tutorial for October - MBTN Academy
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Operating Leverage – Free Tutorial for October

October’s free MBTN tutorial is Leverage 1: Operating Leverage, one of our finance, strategy, and entrepreneurship modules. We hear quite a bit about financial leverage (which is covered in Leverage 2), but what many new businesspeople don’t think as much about is the impact o operating leverage on their success. Operating leverage has more to do the fundamental nature of one’s business (margins, fixed, and discretionary costs) and is correlated more with industry dynamics, though managerial decisions certainly influence it as well.

This month’s tutorial will help managers and students understand the following topics:

  • Definition of operating leverage
  • How operating leverage relates to margins, fixed, and discretionary costs
  • The multiplicative Impact on Operating Profit in relation to the breakeven point
  • Impact of product mix on operating leverage
  • How growth and product line mix interact to change operating leverage

The free link has expired, but check out this month’s tutorial under the Business Education Resources Blog.

If you find this tutorial insightful, you might also consider the following additional resources:

Our complete catalog of MBTN modules – choose any combination of 3 or more modules when used in an academic setting

Brochure for Finance Modules when used in an academic setting

Finance Bundle – includes all Finance Modules ($49.95)

MBTN All Modules and Certifications ($99.95)

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