Explain this addresses which company has more operating leverage.
Problem- Which company would have higher operating leverage: a software company that makes large investments in research and development, or a manufacturing company that uses expensive materials and relies on highly skilled manual labor rather than automation? Why?
I need help describe to determining which company would have higher operating leverage, a software company that makes large investments in research and development, or a manufacturing company that uses expensive materials and relies on highly skilled manual labor rather than automation.