Question 2 (1 point) Husky Manufacturing Proforma Income Statement 2020 ($000) Sales 22,000 Cost of Goods Sold 9,000 Depreciation 3,250 Fixed Costs 2,450 Interest 3,065 Earnings Before Tax 4,225 Income Tax 1,690 Earnings After Tax 2,535 Shares o/s 100 EPS 25.35 The degree of combined or totalleverage is 3.0615. The degree of operating leverage is 1.336 and the degree of comined leverage is 2.3052 meaning that if the sales increase by 3.0% the new EPS will be $24.36. The degree of operating leverage is 1.336 and the degree of comined leverage is 2.3052 meaning that if the sales increase by 3.0% the new EPS will be $26.11 If the sales decreasey 3%, the EPS will decrease by 3%. The degree of operating leverage is 1.336 and the degree of comined leverage is 2.3052 meaning that if the sales increase by 3.0% the new EPS will be $27.10