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please answer The Sterling Tire Company's income statement for 20XX is as follows: Given this income statement, compute the following: a. Degree of operating leverage.
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The Sterling Tire Company's income statement for 20XX is as follows: Given this income statement, compute the following: a. Degree of operating leverage. (Round the final answer to 2 decimal places.) DOL x b. Degree of financial leverage. (Round the final answer to 2 decimal places.) DFL x c-1. Degree of combined leverage. (Do not round the intermediate calculations. Round the final answer to 2 decimal places.) DCL x c2. 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.) c-3. Does financial or operating leverage have the greater imperct? DOL DFL 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 Step by Step Solution
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