1. Meyer Appliance Company makes cooling fans. The firm's income statements PRACTICE PROBLEMS AND SOLUTIONS as follows: Sales (7,000 fans at $20) Less: Variable costs (7,000 fans at $8) Fixed costs .... Earnings before interest and taxes (EBIT) - Interest (0) Earnings before taxes (EBT) Taxes (1) Earnings after taxes (EAT) $140.000 56,000 44,000 $ 40,000 10.000 $ 30,000 6.000 $ 24,000 Compute the following: a. Degree of operating leverage. b. Degree of financial leverage. c. Degree of combined leverage. d. The break-even point