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Decision with Long-term Influence

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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Operating leverage is the percentage of fixed costs in a company's cost ...

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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