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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