Question: Lexington wants to decrease its degree of operating leverage? Which of the following actions should the firm take? a) Increase fixed operating costs while decreasing

Lexington wants to decrease its degree of operating leverage? Which of the following actions should the firm take?

a) Increase fixed operating costs while decreasing variable operating costs

b) Increase the use of debt while decreasing the use of common stock

c) Increase variable operating costs while decreasing fixed operating costs

d) Increase the use of common stock while decreasing the use of debt

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