1. Operating breakeven analysis determines:

a. the minimum value of assets that a firm should hold to achieve ptofitablility.

b. the maximun amount of the total assets to be financed by debt.

c. the minimun earnings to be retained and the earnings to be paid as dividends.

d. the level of capacity utilzation required to achieve the forecasted sales level.

e. the level of sales of a new product required to achieve profitablility.

2. A firm utilizes 75 percent of its plant capacity to produce the current years sales of 3,000 million. which of the following is the full capacity sales of the firm.

a. 2,000 million.

b. 2,200 million.

c. 3,000 million.

d. 3,450 million.

e. 4,000 million.