8. The cost-volume-profit model can be used

a) to determine a desired selling price.

b) to determine a new breakeven point when fixed costs increase.

c) to determine a new breakeven point when variable costs decrease.

d) all of the above.

11. The higher the firms operating leverage

a) the higher the degree of sensitivity of profits to cost changes.

b) the lower the degree of sensitivity of profits to cost changes.

c) the higher the degree of sensitivity of profits to volume changes.

d) the lower the degree of sensitivity of profits to volume changes