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:

Forcing Style

Forcing style describes a conflict resolution approach where one party aggressively imposes their solution, disregarding others' needs or opinions.

Interpersonal Conflict-Handling

Strategies or methods used by individuals to address and resolve disputes or disagreements in relationships.

Emergencies

Sudden, unexpected events requiring immediate action due to potential threat to health, life, property, or environment.

Avoiding Style

A conflict resolution technique where individuals deliberately ignore or stay away from conflict rather than confronting it directly.