Reference no: EM132808881
Problem 1: Which of the following would increase risk?
A. Increase the use of fixed cost
B. Increase the amount of equity financing.
C. Decrease the amount of inventory by formulating an effective inventory policy.
D. Increase the amount of short-term borrowing.
E. Raise the level of working capital.
Problem 2: Break-even analysis assumes over the relevant range that.
A. Selling prices are unchanged
B. Fixed costs are categorized as permanent or temporary
C. Total costs are unchanged
D. Variable costs are non-linear
E. Fixed costs are non-linear
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