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The definitions contained herein are for general information only and are not
designed for use in connection with the interpretation of any insurance policy
or annuity policy issued through Insurance Answer Center.
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Life Insurance Glossary Terms 4 A B C D E F G H I J K L M N O P Q R S T U V W Y |
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Operating Leverage |
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This represents the extent to which a company's costs of operating are fixed (rent, insurance, executive salaries) as opposed to variable costs (materials, direct labor). Leverage occurs because it only increases its variable but not fixed costs. The ratio of the percentage change in operating income to the percentage change in sales or units sold measures the sensitivity of a firm's profits to changes in sales volume. A firm using a high degree of operating leverage has a breakeven point at a relatively high sales level. |
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| Answer Financial(R) Inc. offers insurance products and services through its licensed affiliates Insurance Answer Center(R) Inc. (California License No. 0B99714), Answer Center Insurance Agency, Inc., and other affiliates. Answer Financial is not an insurance company. Insurance plans and services are from insurance companies and other licensed insurance-related providers. Not all products available in all states. Rates subject to change. |
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