Operating leverage is the simple idea that an investment in capital equipment, once made, can be “leveraged” to create continually decreasing TOTAL unit costs as volume increases. The fixed costs invested in plant, property and equipment for a production line that were justified on a volume of, say, 100 units [...]
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I'm Leo Sadovy, responsible for performance management solutions marketing at SAS. As a former Vice President of Finance with more than 25 years of management experience at Fortune 50 companies, I want to explore with you some of the timeless lessons learned (many the hard way) and insights applied in the business arena over the past three or four decades. Looking beyond passing fads and the latest trends, this blog will focus on those fundamental management principles which have stood the test of time.Tags
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