25.What is the effect of an increase in a unit contribution margin on the product's contribution ratio?

A. Increase but not necessarily ion direct proportion to the contribution margin increase

B. No effect on the contribution ratio

C. The effect cannot be determined

D. Decrease in direct proportion to the contribution margin increase

E. Increase in direct proportion to the contribution margin increase

26.Short term debt financing when compared to long term financing has the following features from the viewpoint of the borrower. Single choice.

(1 Point)

A. Greater flexibility, lower total cost, and lower risk

B. Greater flexibility, higher total cost, and greater risk

C. Greater flexibility, lower total cost, and greater risk

D. Greater flexibility, higher total cost, and lower risk

29. Which of the following would increase risk?. Single choice.

A. Increase the use of fixed cost

B. Increase the amount of equity financing.

C. Decrease the amount of inventory by formulating an effective inventory policy.

D. Increase the amount of short-term borrowing.

E. Raise the level of working capital.

30.Break-even analysis assumes over the relevant range that.

A. Selling prices are unchanged

B. Fixed costs are categorized as permanent or temporary

C. Total costs are unchanged

D. Variable costs are non-linear

E. Fixed costs are non-linear