3 nt ences The Sterling Tire Company's income statement for 20X1 is as follows: STERLING TIRE COMPANY Income Statement For the Year Ended December 31, 20X1 Sales (35,000 tires at $90 each) Variable costs (35,000 tires at $45) Fixed costs Earnings before interest and taxes (EBIT) Interest expense Earnings before taxes (EBT) Income tax expense (30%) Earnings after taxes (EAT) a. Compute the degree of operating leverage. Note: Round your answer to 2 decimal places. Degree of operating leverage b. Compute the degree of financial leverage. Note: Round your answer to 2 decimal places. Degree of financial leverage c. Compute the degree of combined leverage. Note: Round your answer to 2 decimal places. $ 3,150,000 1,575,000 550,000 $ 1,025,000 57,500 $ 967,500 290, 250 $ 677,250

The Sterling Tire Company's income statement for 201 is as follows: a. Compute the degree of operating leverage. Note: Round your answer to 2 decimal places. b. Compute the degree of financial leverage. Note: Round your answer to 2 decimal places. c. Compute the degree of combined leverage. Note: Round your answer to 2 decimal places. b. Compute the degree of financial leverage. Note: Round your answer to 2 decimal places. c. Compute the degree of combined leverage. Note: Round your answer to 2 decimal places. d. Compute the break-even point in units. Note: Round your answer to the nearest whole number