ssignment #1 (Chapters 14,5) * Saved 40 Income Statement Year ended December 31, 20xx Sales (30,000 tires at $45 each) Less: Variable costs (30,000 tires at $20) $ 1,350,000 600,000 Contribution margin Less: Fixed costs 750,000 600,000 pints Skipped Earnings before interest and taxes (EBIT) Interest expense 150,000 75,000 Point Earnings before taxes (EBT) Income tax expense (30%) 75,000 22,500 References 52,500 Earnings after taxes (EAT) Given this income statement compute the following: a. Degree of operating leverage (Round the final answer to 2 decimal places DOU Prev 40 18 Next >