11. The Harding Company manufactures skates. The company's income statement for 20X1 is as follows: Degree of leverage (LOS-2 & 5-5) HARDING COMPANY Income Statement For the Year Ended December 31, 20X1 Sales (10,500 skates @ $60 each) Less: Variable costs (10,500 skates at $25) Fixed costs Earnings before interest and taxes (EBIT) Interest expense.... Earnings before taxes (EBT) Income tax expense (30%) Earnings after taxes (EAT) $630,000 262,500 200,000 $167,500 62,500 $105,000 31,500 .............. $ 73,500 Given this income statement, compute the following: a. Degree of operating leverage. b. Degree of financial leverage. c. Degree of combined leverage. d. Break-even point in units (number of skates)