All else the same, if a firm revises its production process to use more labour and less machinery, the firm will have an increased degree of operating leverage.

Operating Leverage

The degree to which a firm or project can increase operating income by increasing revenue, highlighting the effects of fixed costs.

Production Process

The sequence of operations or activities involved in producing goods or services, from raw materials to finished products.

Machinery

Mechanical devices or equipment required in the manufacturing process or any industry-specific operations.