A conceptual framework for intra - firm operating leverage analysis { based on the mechanical analysis of physical leverage ( the genesis of the concept of operating leverage ) } of a manufacturing firm under condition of future business risk considering a short - term planning horizon , composed of ( a ) an ex - ante analysis conducted at the beginning of the period for choosing an ' Operating Account Structural Plan ' ( OASP ) from alternative OASPs based on the principle of maximization of expected utility { or principle of minimization of absolute value of expected disutility ( negative utility )} of the ' elasticity coefficient measure' of the ' Degree of Operating Leverage ' ( DOL ) considering the degrees of ' Downside Operating Leverage Risk ( DOLR ) Averseness' and ' Upside Operating Leverage Risk ( UOLR ) Affinity' subjectively assigned by the decision - maker , and ( b ) an ex - post analysis conducted at the end of the period for the performance appraisal of the decision - maker based on ' operating leverage efficiency ' , is formulated and illustrated in this working paper .