$[1].$ Based on Benn's analysis, $4$G$\text{'}$s sales risk relative to Qphone's is most likely to be: A$.$ lower. B$.$ equal C$.$ higher.

$[2].$ What is the most appropriate response to Cho's question regarding the components of business risk? A$.$ Sales risk and financial risk B$.$ Operating risk and sales risk. C$.$ Financial risk and operating risk. $3.$ The most appropriate response to Cho's question regarding the classification of risk arising from the mixture of variable and fixed costs is: A$.$ sales risk. B$.$ financial risk. C$.$ operating risk.

$4.$ Based on the information in Exhibit $2$ the degree of operating leverage $($DOL$)$ of$4$G$,$ Inc., at unit sales of $1,000,000,$ is closest to: A$.1\mathrm{.}60.$ B$.2\mathrm{.}67.$ c$.3\mathrm{.}20.$

$5.$ Based on the information in Exhibit $2,4$G$,$ Inc.$\text{'}$s degree of financial leverage $($DFL$),$ at unit sales of $1,000,000,$ is closestto: A$.1\mathrm{.}33.$ B$.2\mathrm{.}67.$ c$.3\mathrm{.}00.$

$6.$ Based on the information in Exhibit $1$ and Exhibit $3$ Qphone's expected percentage change in operating income for $2010$ is closest to: A$.17\mathrm{.}25\%.$ B$.21\mathrm{.}00\%.$ c$.24\mathrm{.}30\%.$

$7.4$G$\text{'}$s breakeven quantity of unit sales is closest to: A$.437,500$ units. B$.625,000$ units. C$.875,000$ units.

$8.$ In response to Cho's question regarding an increase in unit sales above $2009$ unit sales levels, it is most likely that $4$G$\text{'}$s net income will increase at: A$.$ a slower rate than Qphone's.

B$.$ the same rate as Qphone's.

C$.$ a faster rate than Qphone's.

$4.$ The most appropriate response to Cho's question regarding a description ofthe degree of total leverage is that degree of total leverage is:

A$.$ the percentage change in net income divided by the percentage change in units sold.

B$.$ the percentage change in operating income divided by the percentage change in units sold.

C$.$ the percentage change in net income divided by the percentage change in operating income.

$5.$ If two companies have identical unit sales volume and operating risk, they are most likely to also have identical:

A$.$ sales risk.

B$.$ business risk.

C$.$ sensitivity of operating earnings to changes in the number of units produced and sold.

$6.$ Degree of operating leverage is best described as a measure ofthe sensitivity of:

A$.$ net earnings to changes in sales.

B$.$ fixed operating costs to changes in variable costs.

C$.$ operating earnings to changes in the number of units produced and sold.

$7.$ The Fulcrum Company produces decorative swivel platforms for home televisions. If Fulcrum produces $40$ million units, it estimates that it can sell them for $$100$ each. Variable production costs are $$65$ per unit and fixed production costs are

$$1\mathrm{.}05$ billion. Which of the following statements is most accurate? Holding all else constant, the Fulcrum Company would.

A$.$ generate positive operating income if unit sales were $25$ million.

B$.$ have less operating leverage if fixed production costs were $10$ percent greater than $$1\mathrm{.}05$ billion.

C$.$ generate $20$ percent more operating income if unit sales were $5$ percent greater than $40$ million.

$8.$ The business risk of a particular company is most accurately measured by the company's:

A$.$ debt$-$to$-$equity ratio.

B$.$ efficiency in using assets to generate sales.

C$.$ operating leverage and level of uncertainty about demand, output prices, and competition.

$9.$ Consider two companies that operate in the same line of business and have the same degree of operating leverage: the Basic Company and the Grundlegend Company. The Basic Company and the Grundlegend Company have, respectively, no debt and $50$ percent debt in their capital structure. Which of the following statements is most accurate? Compared to the Basic Company, the Grundlegend Company has:

A$.$ a lower sensitivity of net income to changes in unit sales.

B$.$ the same sensitivity of operating income to changes in unit sales.

C$.$ the same sensitivity of net income to changes in operating income.

$9.$ If two companies have identical unit sales volume and operating risk, they are most likely to also have identical:

A$.$ sales risk.

B$.$ business risk.

C$.$ sensitivity of operating earnings to changes in the number of units produced and sold.

$10.$ Degree of operating leverage is best described as a measure ofthe sensitivity of:

A$.$ net earnings to changes in sales.

B$.$ fixed operating costs to changes in variable costs.

C$.$ operating earnings to changes in the number of units produced and sold.

$12.$ The Fulcrum Company produces decorative swivel platforms for home televisions. If Fulcrum produces $40$ million units, it estimates that it can sell them for $$100$ each. Variable production costs are $$65$ per unit and fixed production costs are $$1\mathrm{.}05$ billion. Which of the following statements is most accurate? Holding all else constant, the Fulcrum Company would. A$.$ generate positive operating income if unit sales were $25$ million. B$.$ have less operating leverage if fixed production costs were $10$ percent greater than $$1\mathrm{.}05$ billion. C$.$ generate $20$ percent more operating income if unit sales were $5$ percent greater than $40$ million.

$13.$ The business risk of a particular company is most accurately measured by the company's: A$.$ d$-$to$-$e