1. Earnings before taxes are the general and administrative expenses, and interest expenses subtracted from gross profit

Select one:

True

False

2. When calculating Gross Profit, if the Sales Revenue was $680, 000 and Cost of Goods Soli is 45, 000, then it would be $725,000.

Select one:

True

False

3. Leverage is the use of special force or effects to produce more than normal results from a given course of action

Select one:

True

False

4. When calculating the Break-even point, if the Contribution Margin is $1.50 and the Fixed Costs are $75,000, then the breakeven point would be 50,000.

Select one:

True

False

5. Financial Leverage reflects the amount of debt used in the capital structure of the firm

Select one:

True

False