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1. How does the concept of operating leverage impact a firm’s decision to EITHER employ a small fleet of its own trucks and use U-Haul rentals when needed OR maintain a much larger fleet of its own trucks and not have to rely on U-Hauls?

2. How does the concept of operating leverage impact a firm’s decision on how it should pay its workers, i.e., fixed salary or a piece-rate basis? What effect do higher interest expenses have on operating leverage?

Financial Management, Finance

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