Impact of Operating Leverage on Profits Firm F is the most sensitive firm - for it a 50% increase in sales leads to a 400% increase in EBIT Our example reveals that it is a mistake to assume that the firm with the largest absolute or relative amount of fixed costs automatically shows the most dramatic effects of operating leverage Later, we will come up with an easy way to spot the firm that is most sensitive to the le presence of 16-7 operating leverage.16-7 -- for it, a 50% increase in sales leads to a . u Our example reveals that it is a mistake to assume that the firm with the largest absolute or relative amount of fixed costs automatically shows the most dramatic effects of operating leverage. u Later, we will come up with an easy way to spot the firm that is most sensitive to the presence of operating leverage