Abstract:
The technical lever concept is introduced, meanwhile the extent of the influence by the technical cost lever and the technical price lever on enterprise income before interest and tax is discussed. Based on relevant theoretic calculation, it is concluded that technical advancement will increase the income before interest and tax of an enterprise, and that the lower an enterprise's economic benefit is, the faster the said income will be increased owing to cutting down the variable cost or raising up the product unit price resulting from technical advancement.