5. Milwaukee Melon Manufacturers sells exotic melons at one price, $10 cach. The firm has variable costs of $160.000 on sales of 32.000 melons. Fixed costs are $80,000. Operating income (EBIT) this year is $80,000 and after-tax net income is $30,000. Interest expense is $20,000. a. What is its degree of financial leverage at the current level of EBIT? b. Suppose that EBIT were to decline 10 percent next year. What would be the percentage decline in earnings per share (EPS)