If a firm's fixed costs are exactly equal to its depreciation expense, and both are greater than zero, then at its cash break-even point the DOL ______________.
A) Is equal to one.
B) Is equal to two.
C) Is greater than two.
D) Is undefined since you can't divide by zero.
E) Cannot be determined without more information.

Question

Quizplus · Accepted Answer

The Answer of If a firm's fixed costs are exactly equal to its depreciation expense, and both are greater than zero, then at its cash break-even point the DOL ______________.
A) Is equal to one.
B) Is equal to two.
C) Is greater than two.
D) Is undefined since you can't divide by zero.
E) Cannot be determined without more information.

If a Firm's Fixed Costs Are Exactly Equal to Its