1. All else constant, the accounting break-even level of sales will decrease when the:
a. Fixed costs increase.
b. Depreciation expense decreases.
c. Contribution margin decreases.
d. Variable costs per unit increase.
e. Selling price per unit decreases.
2. If a company gets funds for its investment projects from these two sources and their amounts as follows:
bank loan = $1 million
investors money = $2 million
The proportion of debt that it uses to finance its projects is:
a-) 10%
b-) 20%
c-) 66%
d-) 33%