The following date is for a company

Profit Margin 12%

Return on Investment 20%

Debt to Asset Ratio 55%

• Sales (100,000 units) $1,000,000
• Variable costs 300,000
• Contribution margin 700,000
• Fixed manufacturing costs 250,000
• Operating income 450,000
• Interest 60,000
• Earnings before taxes 390,000
• Taxes (at 31%) 120,000
• Net income $269,100
• Shares outstanding 10,000

Required

Part A - What is The Degree of Operating Leverage.

Part B - What is The Degree of Financial Leverage

Part C - What is The Degree of Combined Leverage

Part D Explain to an Investor the implications of every ratio

Part E Would you recommend investing in the company if there is an expectations of economic recession, explain your recommendation