1) 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

2) Operating Leverage is the extent to which current assets and associated fixed costs are utilized in business

Select one:

True

False

3) Selling equity reduces potential profits but minimizes risk exposure

Select one:

True

False

4) Variable costs include raw material, factory labor, and sales commissions

Select one:

True

False

5) When calculating the Break-even point, if the Contribution Margin is $1.40 and the Fixed Costs are $70,000, then the breakeven point would be 50,000.

Select one:

True

False