1 ne sterling Tire Company's income statement for 20xx is as follows: STERLING TIRE COMPANY Income Statement Year ended December 31, 20xx Sales (20,000 tires at $80 each) $ 1.600.000 Less: Variable costs (20,000 tires at $55) 1,100,000 02:56 11 Contribution margin Less: Fixed costs See, 380,000 Earnings before interest and taxes (EBIT) Interest expense 200.000 75,000 Earnings before taxes (ET) Income tax expense (30%) Earnings after taxes (CAT) 125.000 37,500 $ 67,500 Given this income statement, compute the following: o. Degree of operating leverage (Round the final answer to 2 decimal places.) DOL X b. Degree of financial leverage (Round the final answer to 2 decimal places.) DFL X c-1. Degree of combined leverage (Do not round the intermediate calculations. Round the final answer to 2 decimal places.) DCL c-2. Using your answers to a. and b. calculate the percentage increase in EBIT and EBT from a 20 percent increase in sales volume. (Do not round the intermediate calculations. Round the final answers to 2 decimal places.) EBIT EBT c-3. Does financial or operating leverage have the greater impact? O DFL ODOL d. Break-even point in units. (Round the final answer to the nearest whole number.) Break-even point tires e. Break-even point considering the interest expense as a fixed cost Break-even point tires