Degree (LO5-2 intermediate Problems 10. The Sterling Tire Company's income statement for 20X1 is as follows: STERLING TIRE COMPANY Income Statement For the Year Ended December 31, 20X1 Sales (20,000 tires at $60 each) Less: Variable costs (20,000 tires at $30) Fixed costs Earnings before interest and taxes (EBIT) Interest expense Earnings before taxes (EBT) Income tax expense (30%) Earnings after taxes (EAT) $1,200,000 600,000 400,000 $ 200,000 50.000 $ 150,000 45,000 $ 105,000 Given this income statement, compute the following: 6. Degree of operating leverage. b. Degree of financial leverage. c Degree of combined leverage. d. Break-even point in units. Commany manufactures skates. The company's income statement