Question: Mallory Company has had difficulty finding and retaining skilled workers. As a result, management decided to invest heavily in computerized manufacturing and to decrease reliance

Mallory Company has had difficulty finding and retaining skilled workers. As a result, management decided to invest heavily in computerized manufacturing and to decrease reliance on labor. Which of the following is a likely outcome of this decision?

A : A decrease in its operating leverage.

B : A decrease in variable costs and an increase in fixed costs.

C : A decrease in the unit contribution margin.

D : An increase in both variable and fixed costs.

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