Question: 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

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

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

a) True
b) False

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