Number of common stock 100,000 Note: the firm has no preferred stock a) What is the firm's fixed cost? b) Find the firm's degree of operating leverage, financial leverage and combined leverage. c) If the firm's sales are increased by 10%, how much earnings per share (in kwacha) would the firm produce? d) Find the firm's breakeven point in sales kwacha. e) Do you want the firm to use higher or lower leverage when there is a bad economy? Explain with supporting reasons. Following is the partial financial information of Candy Company. Net income Interest expense Sales Price per unit Variable cost per unit Tax rate K120,000 K100,000 K800,000 K40 K16 40%