1) Financial leverage deals with:A.-the relationship of debt and equity in the c

1) Financial leverage deals with:A.-the relationship of debt and equity in the capital structure.B.-the entire income statement.C.-the relationship of fixed and variable costs.D.-the entire balance sheet.2) When a firm employs no debtA.-it has a financial leverage of zero.B.-its operating leverage is equal to its financial leverage.C.-it has a financial leverage of one.D.-it will not be profitable.3) A firms break-even point will rise ifA.-contribution margins increaseB.-price per unit risesC.-fixed costs decreaseD.-variable cost per unit rises4) If a firm has a price of $4.00 variable cost per unit of $2.50 and a breakeven point of 20000 units fixed costs are equal to:A.-$10000B.-$30000C.-$13333D.-$50000