The Harding Company manufactures skates. The companys income statement for 2013 is as follows:

HARDING COMPANY
Income Statement
For the Year Ended December 31, 2013
Sales (10,100 skates @ $52 each)	$	525,200
Variable costs (10,100 skates at $21)		212,100
Fixed costs		160,000
Earnings before interest and taxes (EBIT)	$	153,100
Interest expense		60,500
Earnings before taxes (EBT)	$	92,600
Income tax expense (20%)		18,520
Earnings after taxes (EAT)	$	74,080

a.	Compute the degree of operating leverage. (Round your answer to 2 decimal places.)

Degree of operating leverage

b.	Compute the degree of financial leverage. (Round your answer to 2 decimal places.)

Degree of financial leverage

c.	Compute the degree of combined leverage. (Round your answer to 2 decimal places.)

Degree of combined leverage

d.	Compute the break-even point in units (number of skates). (Round your answer to the nearest whole number.)

Break-even point

skates