(The importance of the operational and financial leverage to maximize the profits of industrial enterprises)


The analysis Breakeven operating and financial leverages is one of the most important tools used in planning function and performance evaluation .Breakeven analysis helps in planning of profits and determine the optimal size production That maximize profits . Also operating leverage helps in decisions making. expansion production and sales in order to maximize profits especially for industrial project of intensive capital . in order to clarify impact to operating leverage on maximize profits we choose kubaisa concrete factory as a case study..the results breakeven point of the factory is about 54% form sales which is low that. demonstrating the factory a has great opportunity to maximize profits as the safety margin is about 46% and this means. The factory has a low own risk .On the second hand the operating leverage of the factory which is (2.2)This means that if the increase is in sales by 10% then the net in come of the factory will increase up to 22% which makes an opportunity to maximize its profits by increasing the rate of exploitation of available work energy especially under the demand for concrete is increasing and the lraq now is produce only not more than 12% of domestic demand which provides through import .