Durosteel Shafts Inc, supplies cam shafts to GM for their popular Chevy Malibu model. Automobile sales fell significantly during the recent financial crisis. Now, at the end of Year 1, GDP is growing again and GM is forecasting an increase in automobile sales of 11% over the coming year. Use the data in the table to estimate Durosteel's operating profit margin (EBIT/Sales) for Year 2. Durosteel Shafts Inc. (S000,000s) Year 1 (Actual) Year 2 (Forecast) $1,021 Sales S920 EBIT S60 6.52% Operating Profit Margin Operating Leverage 1.5 a. 16.50% 6.8.45% C.6,84% d.6.52% Se 7 24% Jerry's Dog Food, Inc. is a dog food wholesaler located in Greenwich, Connecticut. Selected financial statement values for Jerry's are shown in the table below. What is the degree of financial leverage for Jerry's given the change in earnings from Year 1 to Year 2? Jerry's Dog Food Inc. Year 1 Year 2 EBIT $18,000 $20,500 Interest 200 200 Pre-Tax Income 17,800 20,300 Taxes 6,500 7,100 Net Income 11,300 13,200 Shares Outstanding 2,100 2,100 EPS 5.3810 6.2857 Ca. 1.05 b.1.21 01.01 d. 0.62 e2.55