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Harding Company manufactures skates. The company's income statement for 2010 is as follows: Their Income Statement for the ended December 31, 2010; Their sales of

Harding Company manufactures skates. The company's income statement for 2010 is as follows: Their Income Statement for the ended December 31, 2010;

Their sales of 10,000 skates @$50 each is $500,000

Their variable costs (less) 10,000 skates at $20 is $200,000

With a fixed cost of $150,000

Earnings before interest and taxes is $150,000

and their interest expense is $60,000

and earnings before taxes is 90,000

with an income tax expense(40%) of $36,000

earnings after taxes are $54,000

1) compute the following

a. degree of operating leverage

b. degree of financial leverage

c. degree of combined leverage and

d. braek-even point in units (number of skates)

Thank you

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