Cost of leverage

Chad Gates owns Strings Attached, a store that sells guitars. The company has SS million in current annual sales, fixed operating costs of dollar 300,000, and dollar 700.000 in variable operating costs, for a total EBT of S2.5 million. The firm has debt of dollar 16,666,666.67, on which it pays 9 percent annual interest. The degree of combined leverage (DCL) for Strings Attached is 1.72. Calculate the degree of operating leverage (DOL). What is the degree of financial leverage (DFL) for Strings Attached? Calculate your answer using the EBIT and interest expense figures and your knowledge of how DOL and DFL jointly determine DCL. If sales next year increase by 20 percent, what will be the percent change in net income