Decision with Long-term Influence
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A management decision that would have a long term influence on the operating leverage of a firm would be:
increasing the advertising budget.
substituting robots for hourly paid production workers.
increasing prices in proportion to raw material cost increases.
having a season-end sale of seasonal products.
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Solution Summary
Briefly explains which kind of management choice would affect the operating leverage of a firm in the long-run.
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Operating leverage is the percentage of fixed costs in a company's cost ...
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