Operating leverage Michel Scarpante Rosas, Sergio Antonio Loureiro Escuder

Abstract

The operational leverage degree results from the need for managers to make decisions regarding the process of cost, volume and profit management analysis, resulting from the application of the variable cost method, using a technique that shows the percentage Volume and profit, considering the percentage of leverage derived from it. In this sense it assists in the decision-making process regarding the formulation of pricing, cost, market and profit policies. One of the important factors in this question is the Point of Equilibrium. The choice and objective of the proposed theme was due to the importance of effectively understanding how we can manage operating sales to reach the significant number of profits, without changing the sales price and its variables. At first it seems an easy task, but with concepts and definitions of great authors, showing how the Operational Leverage works, it will be presented what impacts it brings to the corporation and how to reach the desired result of the company. In order to do this, qualitative / bibliographic research was explored with great authors in order to better understand the theme and to corroborate that information is paramount for better decision making in this aspect, causing a greater or lesser risk to the company, impacting on the Production, with the purpose of increasing sales, maximizing profits to owners and shareholders without changing prices.