The Allen Corp

question 25

Multiple Choice

The Allen Corp. in 2016 had total revenues = $10 million, variable costs = $3 million, operating income of $5 million, and net income = $2 million. The operating leverage effect is

• A) 1.4
• B) 2.6
• C) 3.5
• D) 6.5

---

Definitions:

Leadership Grid

A model used to assess leadership styles based on concern for people and production, creating classifications such as "team leader" or "authoritarian."

Leadership Styles

Various approaches and methods leaders use to guide, motivate, and manage teams and organizations.

Concern for Task

The focus and priority given to completing job-related activities efficiently and effectively.

Concern for People

An aspect of leadership or management that focuses on the welfare, needs, and wellbeing of employees.