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    This addresses which company has more operating leverage.

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    Which company would have higher operating leverage: a software company that makes large investments in research and development, or a manufacturing company that uses expensive materials and relies on highly skilled manual labor rather than automation? Why?

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    https://brainmass.com/business/operations-research/addresses-company-more-operating-leverage-471377

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    The manufacturing company that uses expensive materials and relies on highly skilled manual labor rather than automation would have a higher operating leverage than a software company. The manufacturing company is purchasing the expensive materials either on accounts payable or from cash and the highly skilled manual labor is paid ...

    Solution Summary

    The solution provides a detailed discussion determining which company would have higher operating leverage, a software company that makes large investments in research and development, or a manufacturing company that uses expensive materials and relies on highly skilled manual labor rather than automation.

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