30 minutes! Please help!

1. In a leveraged approach, a company will have

low fixed costs.

high variable costs.

a wide contribution margin.

none of the above.

2. In a conservative approach, a company will have

		low variable costs.
		high fixed costs.
		a narrow contribution margin.
		none of the above.

3. All of the following are part of working capital EXCEPT

		inventory.
		cash.
		mortgage.
		accounts receivable.
		none of the above.

4. A firm is experiencing an increase in variable costs. What can the firm do to maintain its profitability?

		Decrease its fixed costs to break even sooner.
		Increase its fixed costs to balance out its increased variable costs.
		Raise its price to increase its contribution margin.
		Lower its price to gain a greater market share.