Help Save 2 Sub The Sterling Tire Company's income statement for 20XX is as follows 27 STERLING TIRE COMPANY Income Statement Year ended December 31, 2exx Sales (30,eee tires at $45 each) Less: Variable costs (30, e tires at $30) 8 01:28:59 1,35e, we 900, eee Contribution margin Less: Fixed costs 450,000 Bee 190 Earnings before interest and taxes (EBIT) Interest expense 15e, Bae Ge, Bee Earnings before taxes (EBT) Income tax expense (35%) 90,60 31, See Earnings after taxes (EAT) $ 58,500 Given this income statement, compute the following a. Degree of operating leverage (Round the final answer to 2 decimal places.) DOL b. Degree of financial leverage. (Round the final answer to 2 decimal places.) DFL c-1. Degree of combined leverage (Do not round the Intermediate calculations, Round the final answer to 2 decimal places.) DCL c-2. Using your answers to a. and b. calculate the percentage Increase in EBIT and EBT from a 20 percent increase in sales volume. (Do not round the Intermediate calculations. Round the final answers to 2 decimal places.) EBIT EBT c-3. Does financial or operating leverage have the greater Impact? O DFL O DOL d. Break-even point in units. (Round the final answer to the nearest whole number.) Break-even point tires e. Break-even point considering the interest expense as a fixed cost. Break-even point tires