Problem 5-10 (Algo) Degree of leverage [LO5-2, 5-5] The Sterling Tire Company's Income statement for 20X1 is as follows: STERLING TIRE COMPANY Income Statement For the Year Ended December 31, 20x1 Sales (29,000 tires at $78 each) Variable costs (29,000 tires at $39) Fixed costs Earnings before interest and taxes (EBIT) Interest expense Earnings before taxes (EBT) Income tax expense (30%) Earnings after taxes (EAT) a. Compute the degree of operating leverage. Note: Round your answer to 2 decimal places. Degree of operating leverage $ 2,262,000 1,131,000 490,000 $ 641,000 54,500 $ 586,500 175,950 $ 410,550 b. Compute the degree of financial leverage. Note: Round your answer to 2 decimal places. Degree of financial leverage c. Compute the degree of combined leverage. Note: Round your answer to 2 decimal places. Degree of combined leverage d. Compute the break-even point in units. Note: Round your answer to the nearest whole number. Break-even point units