Tree Top Furniture Has Current Sales of $311,000 and Fixed

question 73

Multiple Choice

Tree Top Furniture has current sales of $311,000 and fixed assets of $198,000.The firm is currently operating at 83 percent of capacity.What is the maximum percentage increase the firm can have in sales without investing in additional fixed assets?

• A)20.48%
• B)17.00%
• C)19.25%
• D)23.09%
• E)36.33%

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Definitions:

Zone Of Indifference

A concept in management theory referring to the range of directives or behaviors from leadership that employees will accept without objection because they see them as reasonable or beneficial.

Actual Authority

The explicit power granted to an individual or entity, usually through a role or position, to make decisions and act on behalf of others.

Coercive Power

A form of power that is based on the ability to deliver punishments or impose negative repercussions.

Sanctions

Measures taken by countries or international bodies to restrict or penalize certain actions, often used to enforce international law or standards.