Question: Question 1 (1 point) The concept of operating leverage involves the use of levels of operation to magnify returns at high fixed costs O variable

Question 1 (1 point) The concept of operating leverage involves the

Question 1 (1 point) The concept of operating leverage involves the use of levels of operation to magnify returns at high fixed costs O variable costs O marginal costs O semi-variable costs Question 2 (1 point) If a firm has a break-even point of 20,000 units and the contribution margin on the firm's product is $3.00 per unit, what wil the firm's CBIT be at sales of 30,000 units? $90,000 $30,000 O $15,000 $45,000 Question 3 (1 point) A highly automated plant would generally have: O more variable costs than fixed costs. O more fixed costs than variable costs all fixed costs. all variable costs Question 4 (1 point) ) Firm A employs a high degree of operating leverage: Firm B takes a more conservative approach. Which of the following comparative statements about firms A and B is true? A has a lower break-even point than B, but A's profit grows faster after the break-even O A has a higher break-even point than B, but A's profit grows slower after the break-even OB has a lower break-even point than A, but A's profit grows faster after the - break-even. OB has a lower break-even point than A, and profit grows the same rate for both companies after the break-even point. Question 5 (1 point) Rotho Ltd. Recently reported the following financial results: Sales (75.000 nits) $750,000 22 525.00 1875 337,500 25.000 Catlution gin | Final muliaturing call Orange Intered Es before tases Tes31%) Net income Shresultanding 81.375 S181.13 15.000 Rothko's Degree of Operating Leverage is: 1.43 1.56 3.33 2.22 Question 6 (1 point) Rothko's Degree of Financial Leverage is: 1.29 4.50 3.50 1.32 Question 7 (1 point) Rothko's Degree of Combined Leverage is: 2.1 O 1.9 2.9 O 2.0 Question 8 (1 point) If a firm has a 30% change in operating income, and its Degree of Operating Leverage is 3.63, what was its percentage change in unit volume, all other things considered? O 36.5% O 12.52% 8.26% 360% Question 9 (1 point) ECG has a contribution margin of S196,000. If ECG earned $87,000 before taxes in the year, what is the firm's Degree of Combined Leverage

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