1. A company sells their product for $360 per unit and they have variable costs per unit of $293. The fixed costs of the company are presently $3,000,000. If the company increases the fixed costs by 25% and increases the selling price per unit by 10%, with variable costs per unit remaining the same, the breakeven point in units will:

a. decrease

b. increase

c. remain the same

d. Not enough information given

2. From the Investors viewpoint the security used to raise capital with the most risk is:

a. Debt

b. Preferred stock

c. Common stock

d. All have equal risk