12-3 Van Auken Lumber's 2005 income statement is shown here: VAN AUKEN LUMBER: INCOME STATEMENT FOR DECEMBER 31, 2005 (S THOUSANDS) Sales Cost of goods sold Gross profit Fixed operating costs Earnings before interest and taxes Interest Earnings before taxes Taxes (40%) Net Income Dividends (50%) $36,000 (25,200 $10,800 6,480) S 4,320 2,880) S 1,440 576) S 864 S 432 a. Compute the degree of operating leverage (DOL), degree of financial lever- age (DFL), and degree of total leverage (DTL) for Van Auken Lumber. b. Interpret the meaning of each of the numerical values you computed in part a. c. Briefly discuss some ways Van Auken can reduce its degree of total leverage