11. A financial model is only as good as

a.	the rate of growth in the economy.
b.	the companys operating leverage.
c.	the assumptions it uses and the data it uses.
d.	None of the answers are correct.

12. How does cost-volume-profit analysis allows management to determine the relative profitability of a product?

a.	By highlighting potential bottlenecks in the production process.
b.	By keeping fixed costs to an absolute minimum.
c.	By determining the contribution margin and projected profits at various levels of production.
d.	By assigning costs to a product in a manner that maximizes the contribution margin.

13. If a company has variable costs of $40 per unit, fixed costs of $3,000 per month and sells its product for $50, how many units must it sell to break-even?

a.	300
b.	250
c.	100
d.	50

14. A company produces two products, A and B. A sells for $16 and has variable costs of $10. B sells for $12 and has variable costs of $8. Fixed Costs for the period are $35,000. Normally four units of A are sold for every two units of B units. How many units of B must be sold if the company expects profits of $50,000?

a.	15,947
b.	10,637
c.	5,313
d.	Cannot be determined