If a fiRm's fiXed Costs Are Exactly Equal to Its

Multiple Choice

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.