COMPANY X Income Statement Year Ended December 31, 2021 Sales (15,000 units at $80 each) Less: Variable costs (15,000 units at $60) Contribution margin Less: Fixed costs Earnings before interest and taxes (EBIT) Interest expense Earnings before taxes (EBT) Income tax expense (40%) Earnings after taxes (EAT) $1,200,000 900,000 300,000 125,000 175,000 70,000 105,000 42,000 $63,000 Given this income statement, compute the following: (a) Degree of operating leverage. (2 marks) (b) Degree of financial leverage. (2 marks) () Degree of combined leverage: (2 marks) (d) Comment on the impact of a 50 percent increase in sales. (1 mark) (e) Does financial or operating leverage have the greater impact? (1 mark) (f) Break-even point in units. (2 marks) (g) Break-even point considering the interest expense as a fixed cost. (2 mar For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BI V S Paragraph Arial 10pt