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2Q-25 % Levernge anahsi) You are supplied with the following analytical income statement for your firm. It reflects last years operations. Sales ariable costs Revenue

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2Q-25 % Levernge anahsi) You are supplied with the following analytical income statement for your firm. It reflects last years operations. Sales ariable costs Revenue before fixed costs Fixed costs BIT Interest expense arnings before taxes $16,000,000 8,000,000 8,000,000 4,000,000 $4,000,000 1,500,000 S 2,500,000 Taxes Net income 1,250,000 1,250,000 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. If sales should increase by 20 percent, by what percent would earnings before taxes (and net income) increase? e. What is yourfrms beak-even point in sale dallanz

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