The following is an analytical income statement for Med Bhd. $ Sales 5,000,000 Less: Variable costs 1,000,000 Less: Fixed costs 2.000.000 EBIT 2,000,000 Less: Interest 500.000 Earning before tax 1,500,000 Less: Tax 27% 405,000 Net income 1.095.000 EPS 2.50 a. Calculate the degree of operating leverage. What does it explain? (4 m) b. Calculate the degree of financial leverage. What does it explain? (4 m) c. If EBIT decrease 5%, calculate the new value of EPS. (4 m)