4. In the case study "CVP Analysis" Janet doesn't know what price to charge, so she could she get a better idea by consulting with her family accountant, Bob Ryan.

	a) True
	b) False

8. In the case study "CVP Analysis" why does, in the business plan of Janet, "increasing the quantity sold would just make the loss larger"?

a)	Janet does not have the required money to start a profitable business
b)	all of these
c)	fixed cost was too high
d)	variable cost is higher than the price

9. Cost structure refers to:

a)	the extent to which a company uses fixed versus variable costs in its operations.
b)	whether fixed costs are covered by the contribution margin.
c)	where funds are stored.
d)	a company's break-even point.

14. The degree of operating leverage cannot be computed at the break-even point.

	a) True
	b) False

22. The degree of operating leverage is calculated by dividing sales revenue by net income.

	a) True
	b) False

28. The degree of operating leverage is used to calculate the:

a)	change in profit given a change in sales.
b)	break-even sales given a change in sales.
c)	break-even sales given a change in profit.
d)	change in sales given a change in profit.

30. In order to encourage class participation, you have been told in last a couple of weeks by your instructor (Sanat Ullah) that class participation marks have been increased to 10 and a student who regularly appears in bongo class but does not participate in the class will be awarded a maximum of 3 out of 10 marks.

	a) True
	b) False