Operating leverage will change when a firm alters the mix of fixed capital resources and variable labor that it uses.

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Operating leverage measures how much a firm relies on fixed costs versus variable costs in its operations. Therefore, altering the mix of fixed capital resources and variable labor will directly affect the firm's operating leverage. Increasing fixed costs (e.g. investing in more machinery) while keeping variable costs (e.g. labor) constant will increase operating leverage, while decreasing fixed costs and increasing variable costs will decrease operating leverage.

Operating Leverage Will Change When a Firm Alters the Mix