Saved apter Five 5 The Harding Company manufactures skates. The company's income statement for 20x1 is as follows: HARDING COMPANY Income Statement For the Year Ended December 31, 20x1 Sales (12,400 skates @ $98 each) $1,215,200 Variable costs (12,400 skates at $44) 545,600 Fixed costs 390,000 Earnings before interest and taxes (EBIT) $ 279,600 Interest expense 72,000 Earnings before taxes (EBT) $ 207,600 Income tax expense (40%) 83,040 Earnings after taxes (EAT) $ 124,560 Book lint Fint ences a. Compute the degree of operating leverage. (Round your answer to 2 decimal places.) Degree of operating leverage.