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Follow steps in picture Sterling TIre Company's Income statement for 2 0 X 1 is as follows: STERLING TIRE COMPANY Income Statement For the Year
Follow steps in picture
Sterling TIre Company's Income statement for X is as follows:
STERLING TIRE COMPANY
Income Statement
For the Year Ended December x
Sales tires at $ each $
Variable costs tires at $
Fixed costs
Earnings before interest and taxes EBIT
Interest expense
Earnings before taxes EBT
Income tax expense
Earnings after taxes EAT
a Compute the degree of operating leverage.
Note: Round your answer to decimal places.
Degree of operating leverage
b Compute the degree of financlal leverage.
Note: Round your answer to decimal places.
Degree of financial leverage
c Compute the degree of combined leverage.
Note: Round your answer to decimal places.
Degree of combined leverage
d Compute the breakeven point in units.
Note: Round your answer to the nearest whole number.
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