Question
Explain the 2 types of leverage ( operating and financial ), including how we measure leverage, what parts of the company that source of leverage
Explain the 2 types of leverage (operating and financial), including how we measure leverage, what parts of the company that source of leverage affects, the graphs that we used to demonstrate and explain that source of leverage, how the 2 sources of leverage combine to create the total leverage of the company. I also might ask you to calculate DOL and DFL (using either two years or one year of data), how to calculate the breakeven point for operating leverage (in unit sales or in sales revenue) and the indifference point for operating leverage and for financial leverage.
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