Pants. Ditakeven, financial and Operating Leverages Johnson Products, Inc. Income Statement For the Year Ended December 31, 2018 Sales (40,000 bags at $50 each) $2,000,000 Less: Variable costs (40,000 bags at $25) 1,000,000 Fixed costs ....... 600.000 Earnings before interest and taxes 400,000 Interest expense ... 120,000 Earnings before taxes ............ 280,000 Income tax expense (20%) 56.000 Net income ..... $ 224,000 Based on the information above, calculate (show all calculations and responses in good form): a. Break-even in units (in dollars and units). Explain what your numbers mean. As a manager, how would you use the numbers in financial planning? b. What is the degree of financial leverage? Explain what your number mean. As a manager, how would you use the numbers in financial planning? c. What is the degree of operating leverage? Explain what your number mean. As a manager, how would you use the numbers in financial planning