QUESTION 2 The Sterling Tire Company's income statement for 2019 is as follows: Sterling Tire Company Income Statement For the Year Ended December 31, 2019 Sales (38,000 tires at $96 each) 53,648,000 Variable costs (38,000 tires at $48) 1,824,000 Fixed costs 580,000 Earnings before interest and taxes $1,244,000 KEBIT) Interest expense 59,000 Earnings before taxes (EBT) $1,185,000 Income tax expense (30%) 355,500 Earnings after taxes (EAT) $ 829,500 Shares outstanding 500,000 Required: Given this income statement, compute the following: a) Compute the degree of operating leverage. (Round your answer to 2 decimal places) (2.5 Marks) b) Compute the degree of financial leverage. (Round your answer to 2 decimal places.) (2.5 Marks) c) If the sales volume increased by 5% by how much would the EBIT increase? Give your answer in percentage and Dirhams (3 marks) d) Compute the earning per share for the Sterling Tire Company (2 Marks) ABC Arial 3 (12pt) T