4- All else the same, if a firm revises its production process to use more labour and less machinery, the firm will have: I. An increased capital intensity II. An increased degree of operating leverage. III. Smaller changes in OCF for a given change in sales quantity. A) I only B) II only C) III only D) II and III only E) I, II, and III 5- 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 (The project has conventional cash flows, no salvage value, and no net working capital investments.) A) is less than two B) is equal to two C) is greater than two D) is undefined since you cannot divide by zero E) cannot be determined without more information 6- A project has projected sales of 25,600 units with a selling price of $4.95 each. Annual fixed costs are $31,000 with variable costs of $2.18 per unit. The project has a three-year life and requires an initial investment of $62,900 for equipment. The equipment will be depreciated straight-line to zero over three years. The tax rate is 34%. What is the project's degree of operating leverage at the given level of output? A) 1.59 B) 1.68 1.93 D) 2.04 E) 2.26 C)