A. TRUE / FALSE QUESTIONS Write either "True" or "False" on the blank preceding each question 1. The denominator of the "operating breakeven point in units formula is the "contribution margin eamed from each unit sold. 2. The "breakeven point in Sales dollars" can be calculated by mulwplying the "operating breakeven point in units by the "Variable Cost per unit." 3. When calculating the annual Depreciation Expense" using the straight-line depreciation method, any "Salvage Value applicable to the item being depreciated is deducted from the fixed asset cost in the numerator of the *Depreciation Expense" formula. | 1111 4. "Depreciation Expense" is added back to "Net Profit" each year to calculate the firm's "Operating Cash Flow" for the year. 5. When leasing a vehicle, the tease payments are typically made at the end of each year that the lease is in effect. 6. For a "buying" analysis for a fixed asset purchase, the cash outflow to initially pay for the fixed asset typically occurs at the end of the asset's life. 1. For a "buying analysis, the "Loan Interest Component of the annual loan payment typically increases each year throughout the analysis, reaching its highest level in the final year 8. Each loan payment consists of two components: 1) loan principal repaid; and 2) interest