CHAPTER FIVE HOMEWORK 6 Saved 2 The Harding Company manufactures skates. The company's income statement for 20X1 is as follows 1.66 points HARDING COMPANY Income Statement For the Year Ended December 31, 20x1 Sales (10,500 skates $60 each) Variable costs (10,500 skates at $25) Pixed costs Earnings before interest and taxes (EBIT) Interest expense Earnings before taxes (EBT) Income tax expense (30) Earnings after taxes (EAT) $ 630,000 262,500 200,000 167,500 62,500 105, 000 31,500 eBook Ce $ 73,500 Hint a. Compute the degree of operating leverage. (Round your answer to 2 decimal places.) Print Degree of operating leverage References b. Compute the degree of financial leverage. (Round your answer to 2 decimal places.) Degree of financial leverage CHAPTER FVE HOMEWORK 2 166 points b. Compute the degree of financial leverage. (Round your answer to 2 decimal places.) Degree of financial leverage .Compute the degree of combined leverage. (Round your answer to 2 decimal places.) Degre of combined leverage References d. Compute the break-even point in units (number of skates). (Round your answer to the nearest whole number.) Bresk-even pont skates