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Operating leverage is the impact of change in the level ofoutput of the operating income. If you realize that guests wait anhour at your restaurant each evening, would you expand yourrestaurant to seat more guests or build additional restaurants inthe nearby communities? What other factors would you consider? Why?What would be the disadvantages and advantages of the twooptions?

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Elin Hessel
Elin HesselLv2
29 Sep 2019

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