1. Which of the following is true of the degree of operating leverage (DOL)?

   	a.	The higher the DOL, the lower the financial risk of the firm.
   	b.	The higher the DOL, the closer the firm is to its operating breakeven point.
   	c.	The higher the DOL, the higher the percentage increase in the sales.
   	d.	The higher the DOL, the closer the firm is to its financial breakeven point.
   	e.	The lower the DOL, the higher the operating risk of the firm.