6- A firm's degree of operating leverage (DOL) depends primarily upon its a. sales variability. b. level of fixed operating costs. c. closeness to its operating break-even point. d. debt-to-equity ratio. 7- If a firm has a DOL of 5 at Q units, this tell us that: a. if sales rise by 5%, EBIT will rise by 5%. b. if sales rise by 1%, EBIT will rise by 1%. c. if sales rise by 5%, EBIT will fall by 25%. d. if sales rise by 1%, EBIT will rise by 5%. 8- A firm's degree of Financial leverage (DOL) depends primarily upon its a. sales variability. b. level of fixed operating costs. c. closeness to its operating break-even point. d. debt-to-equity ratio. 9- If current sales $1000, Expected sales $1800, fixed charges before expansion fixed charges after expansion 2500 , variable cost per unit will be decline from $0.5 a. Expansion is right decision b. No expansion is right c. Parity cost point is 2000 units d. Both a and c