Illinois Tool Company's (ITC)fixed Operating Costs Are $1,260,000

question 91

Multiple Choice

Illinois Tool Company's (ITC) fixed operating costs are $1,260,000. Its variable costs average 70% of the price of its products. The firm currently has sales revenue of $9 million per year. What is ITC's degree of operating leverage?

• A)1.60
• B)1.875
• C)3.0
• D)None of the above

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Definitions:

Dispositions

Inclinations or tendencies in behavior and thought patterns of individuals.

Fundamental Dilemmas

Primary or basic conflicts or problems that are often difficult to resolve and require significant effort or innovative solutions.

Trust

Confidence in the reliability, truth, ability, or strength of someone or something.

Self-Efficacy

An individual's belief in their capabilities to achieve a goal or an outcome through their own actions.