ter 5 Help Save & Exd $ 2,200,000 1,200,00 Income statement Year ended December 31, 2exx Sales (40,eee tires at $55 each) Less: variable costs (48,eee tires at $30) Contribution margin Less: Fixed costs Earnings before interest and taxes (EBIT) Interest expense Earnings before taxes (EBT) Income tax expense (35%) 1,000,000 340,000 160,000 6e,eee 100,000 35,000 Earnings after taxes (EAT) $ 65,000 DOL Given this income statement, compute the following: a. Degree of operating leverage. (Round the final answer to 2 decimal places.) 6.25 X b. Degree of financial leverage. (Round the final answer to 2 decimal places.) DFL C-1. Degree of combined leverage. (Do not round the Intermediate calculations. Round the final answer to + decimal places.) 160 X DCL 10.00 X c-2. Using your answers to a. and b. calculate the percentage Increase in EBIT and EBT from a 20 percent inch in sales volume. (Do not round the Intermediate calculations. Round the final answers to 2 decimal places. EBIT EBT c-3. Does financial or operating leverage have the greater Impact? O DFL O DOL d. Break-even point in units. (Round the final answer to the nearest whole number.) Break-even point tires e. Break-even point considering the interest expense as a fixed cost Break-even point tires