2) The Harding Company manufactures skates. The company's income statement for 2019 is as follows: $630,000 262,500 HARDING COMPANY Income Statement For the Year Ended December 31, 2019 Sales (10,500 skates @ $60 cach). 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). 200,000 167,500 62.500 105,000 31.500 $ 73,500 Given this income statement, compute the following: Degree of financial leverage