Star Tex Co. is engaged in the garment industry producing types of shirts with a sales volume of 3,000 units and a unit selling price of $ 25. To manufacture the shirt, the company requires variable costs of $ 10 per unit and a fixed cost of $ 30,000. The company issues a $ 10,000 bond with 9% interest and pays an annual preference dividend of $ 1,200. The applicable tax rate is 25%.

From this information you have to calculate & explain the interpretation from the result of these following:

a. Degree of Operating Leverage (DOL)

b. Degree of Financial Leverage (DFL)

c. Degree of Combined Leverage (DCL)