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    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 Preview

    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.