2) Which of the following is true regarding leverage?

		High variable costs result in higher operating leverage.
		If operating leverage is 1, fixed costs do not exist.
		If variable costs are low it will result in an increase in financial leverage.
		Fixed costs have no effect on operating leverage.
		Both variable costs and fixed costs greatly affect financial leverage.

13)

A lock box plan is

		used to identify inventory safety stocks.
		used to slow down the collection of checks our firm writes.
		used to speed up the collection of checks received.
		used primarily by firms where currency is used frequently in transactions, such as fast food restaurants, and less frequently by firms that receive payments as checks.
		used to protect cash, i.e., to keep it from being stolen.