7. The following are excerpts from the income statement of Company A85 for the period ended December 31,2020 : - Sales - \$1,000,000 - Total variable cost - $350,000 - Earnings before interest and taxes - \$250,000 - Income tax expense - \$50,000 - Net income - $100,000 Compute the degree of financial leverage. 1.40 1.67 2.00 2.50