In the simple lever and fulcrum machine the force is magnified onto a load. The machine creates a mechanical advantage, a form of force amplification. In business the principle is exactly the same. Except here we are not moving a physical object but the objective is to amplify the profitability or financial gain by using some form of a lever and applying this lever to a fulcrum and generating financial advantage.
One of the two forms of business leverage. Operating leverage refers to increasing the fixed costs of operations as a percentage of the total cost of operations. As fixed costs increase the break-even point is elevated but at the same time any marginal unit sales beyond the required break-even point contributes significantly to the profitability.