Operating leverage is the impact of change in the level of, Ask an Expert

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Operating leverage is the impact of change in the level of output of the operating income. If you realize that guests wait an hour at your restaurant each evening, would you expand your restaurant to seat more guests or build additional restaurants in the nearby communities?

What other factors would you consider? Why?

What would be the disadvantages and advantages of the two options?

Submit your answers in a 4- to 6-page Microsoft Word document.

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