Which of the following statements is false? a. mmproposition1, if there are no taxes, states the value of the firm does not depend whatsoever on itscapital structure. b. mm proposition 2, if there are no taxes, explains how the cost of equity decreases as the firm increasesits use of debt financing. c. because interest expense is tax deductible, leverage increases the firm's value by the amount of thepresent value of the interest tax shield. d. because interest expense is tax deductible, a firm's wacc decreases as firms rely more heavily on debt financing.

Lucido products markets two computer games: claimjumper and makeover. a contribution format income statement for a recent month for the two games appears below: claimjumper makeover total sales $ 30,000 $ 70,000 $ 100,000 variable expenses 20,000 50,000 70,000 contribution margin $ 10,000 $ 20,000 30,000 fixed expenses 24,000 net operating income $ 6,000 required: 1. compute the overall contribution margin (cm) ratio for the company.. 2. compute the overall break-even point for the company in dollar sales. 3. complete the contribution format income statement at break-even point for the company showing the appropriate levels of sales for the two products. (do not round intermediate calculations.)