Assume you are reviewing a graph depicting earnings per share (EPS) on the vertical axis and earnings before interest (EBI) on the horizontal axis. Data points for both a levered and an unlevered firm are displayed. Given this, which statement accurately describes this graph?

The unlevered firm has a greater reaction to a change in EBI than does the levered firm.

Debt becomes a greater disadvantage to a firm as EBI increases.

When earnings exceed the breakeven point, the levered firm has the higher EPS.

Both the levered and unlevered firms have zero EPS when EBI is zero.

The levered firm consistently has higher EPS than the unlevered firm.