Financial Data for four automotive parts manufacturers is given below:

	XYZ, Inc.	Delphi Automotive PLC.	Dragon Auto parts Inc.	Pegasus Industries Inc.
Selling Price	$70	$90	$120	$100
Unit Sales	1,200,000	900,000	700,000	1,000,000
Times Interest Earned	8	9	10	7
Variable Costs (% of Sales)	57%	55%	53%	60%
Fixed Costs	$9,000,000	$12,000,000	$10,000,000	$11,000,000
Return on Common Equity	11%	10%	9%	8%
Common Equity	$120,000,000	110,000,000	150,000,000	$140,000,000
Common Shares	13,000,000	12,000,000	15,000,000	14,000,000

A. Using the financial data given in the above table, create income statements for each firm. Assume a common tax rate of 40% for each company.

B. Determine the break-even points in both units and dollars, and the degrees of operating, financial, and combined leverage for each firm.

C. How many units would each company need to sell in order to achieve earnings before interest and taxes of $15M?

D. Create a Line chart that shows the various leverage measures for each company.