Consider the following income statement. GOODING RETAIL, LTD. Year ended Dec. 31, 2019 SALES $3, 560,000

Less: Variable Costs 1,420,000 , Contribution 2,140,000, Less: Fixed Costs 1,200,000, Earnings before interest and taxes (EBIT) 940,000, Less: Interest expense 300,000, Earnings before taxes (EBT) 640,000, Taxes @40% 256,000, Earnings after taxes 384,000, Number of common shares 190,000, Earnings per share (EPS) a) Given the above statement for Gooding Retail, calculate the earnings per share (EPS).

b) Given the above statement, calculate the degree of operating leverage.

c) Given the above statement, calculate the degree of financial leverage.

d) Given the above statement, calculate the degree of combined or total leverage.

e) Write a statement interpreting in words and using the appropriate percentages what the degree of operating leverage (DOL) arrived at in b) means.

f) Find the percentage decrease in earnings per share if there is a 6% decrease in sales revenue.