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15-10 (Lecverage analysti) You have developed the following analytical profit and loss satement fr your company. It represents the most recent year's operations, which ended

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15-10 (Lecverage analysti) You have developed the following analytical profit and loss satement fr your company. It represents the most recent year's operations, which ended yesterday. Sales Variable costs Revenue before fixed costs Fixed costs EBIT Interest expense Earnings before taxes Taxes (0.50) Net income $45750000 22800000 $22950000 9200000 13750000 1350000 $12400000 6200000 $6 200000 Your supervisor has just hand ed you a memo asking for written responses to the following questions (a) At this level of output, what is the degree of operating leverage? (b) What is the degree of financial leverage? (c) What is the degree of combined leverage? (d) What is the firm's break-even point in sales dollars? (e) If sales increase by 25%, by what percent would earnings before taxes (and net income increase

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