Which one of the following will best reduce the risk of a project by lowering the degree of operating leverage? A. Hiring additional employees rather than using temporary outside contractors. B. Subcontracting portions of the project rather than purchasing new equipment to do all the work in-house.C. Buying equipment rather than leasing it short-term. D. Lowering the projected selling price per unit. E. Changing the proposed labor-intensive production method to a more capital intensive method.

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05-12-2022
Business

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Which one of the following will best reduce the risk of a project by lowering the degree of operating leverage? A. Hiring additional employees rather than using temporary outside contractors. B. Subcontracting portions of the project rather than purchasing new equipment to do all the work in-house.C. Buying equipment rather than leasing it short-term. D. Lowering the projected selling price per unit. E. Changing the proposed labor-intensive production method to a more capital intensive method.

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