The range of operations that falls within the capacity of the current level of fixed costs is referred to as the: a) Linear average 1) Marginal rate c Relevant range d) Operating range low All else being equal, this is true about a firm with high operating leverage relative to a firm with operating leverage: 2) a)) A higher percentage of the high operating leverage firm's costs are fixed b) The debt payments limit the high operating leverage firm's opportunities to turn a big profit c) The high operating leverage firm has more debt d) The high operating leverage firm is exposed to less risk 8) A chair manufacturer makes custom chairs using hand tools, wood, glue and varnish. Which of the following statements is true? a) The cost of wood is a direct and variable cost b) The cost of wood is a fixed and indirect cost c) The cost of wood is indirect and variable d) The cost of wood is a fixed and direct cost 4) FACEBOOK, Inc, operates a factory with two departments, X and Y. The rent paid on the manufacturing facility would most likely be allocated to departments X and Y on the basis of: a) Direct labor hours b) Machine hours c)) Square footage occupied d) Units sold Papa Ginos has total sales of $10,000 with a unit selling price of $20, variable manufacturing costs of $4,000, fixed manufacturing costs of $1,000, variable selling and administrative costs of $2,000 and fixed selling and administrative costs of $1,000. What is the company's contribution margin per unit? a) $6,000 b) $4,000 c) $8 d) $12 5)