What is operating leverage? How is it different from financial leverage? Explain.

Operating leverage and financial leverage are two important concepts in financial management, each reflecting a different aspect of a firm's risk and profitability. Understanding the distinction between these two is crucial for managing a company's financial and operational decisions effectively.  

### Operating Leverage  
Operating leverage refers to the extent to which a company's operating income (EBIT) is affected by changes in sales revenue. It arises due to the presence of fixed operating costs in a firm’s cost structure. When a company has high fixed costs relative to its variable costs, it exhibits high operating leverage. This means that a small change in sales can lead to a proportionally larger change in operating income.  

The degree of operating leverage (DOL) is a metric used to measure this ________ ___ ______ _______ _____ _______ ____ _______ _________ _______ ________.
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