7. The Harding Company manufactures skates. The company's income statement for the 2014 is as follows: For the year ended December 31, 2014 Sales (10,000 skates @ $50 each) .$500,000 Less: Variable costs (10,000 skates at $20. . $200,000 Fixed Costs.. 150,000 Earnings before interest and taxes (EBIT) Interest expense.. 150,000 60,000 Earnings before taxes (EBT) Income tax expense (40%). 90,000 36,000 $ 54,000 a. Earnings after taxes (EAT) Given this income statement, compute the following: Degree of operating leverage b. Degree of financial leverage Degree of combined leverage d. Break-even point in units (numbers of skates) c