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What is a measure of operating leverage

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1. What is operating leverage? How does a company increase its operating leverage?

2. How does the replacement of manual labor with automated equipment affect a company's cost structure? What implications does this have for its operating leverage and break-even point?

3. What is a measure of operating leverage, and how is it calculated?

4. Pine Company has a degree of operating leverage of 8. Fir Company has a degree of operating leverage of 4. Interpret these measures.

Reference no: EM13888949

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