1. How does the concept of operating leverage impact a firm’s decision to EITHER employ a small fleet of its own trucks and use U-Haul rentals when needed OR maintain a much larger fleet of its own trucks and not have to rely on U-Hauls?
2. How does the concept of operating leverage impact a firm’s decision on how it should pay its workers, i.e., fixed salary or a piece-rate basis? What effect do higher interest expenses have on operating leverage?