1)Assume the following income statement. All numbers are in millions of dollars.

Sales$625

-Cost of Goods Sold 250

=Gross Profit 375

-Overhead Expenses 200

-Depreciation Expense 150

=Earnings Before Interest

And Taxes (EBIT) 25

-Interest Expense 10

=Earnings Before Tax 15

-Tax @40% 6

=Net Income 9

Assume that Cost of Goods Sold represents the total variable costs of the firm and assume that overhead expenses and depreciation expense represents the fixed costs of the firm. Determine the Degree of Operating Leverage, Degree of Financial Leverage and Degree of Total Leverage of the firm. Assume you expect sales to increase by 20%, determine the percentage increase in earnings using the degree of total leverage formula.

Please show all work in excel form.