The Harding Company manufactures skates. The company's income statement for 20X1 is as follows:

CoursHeroTranscribedText: 1 O The Harding Company manufactures skates. The company's income statement for 20X1 is as follows: HARDING COMPANY Income Statement For the Year Ended December 31, 20x1 10 Sales (10,700 skates @ $64 each) $ 684,800 points Variable costs (10,700 skates at $27) 288,900 Fixed costs 220,000 Earnings before interest and taxes (EBIT) $ 175,900 Interest expense 63.500 g] Earnings before taxes (EBT) $ 112,400 eBook Income tax expense (2096) 22,480 Earnings after taxes (EAT) $ 89.920 I a. Compute the degree of operating leverage. (Round your answer to 2 decimal places.) 1!! . Prim Degree of operating leverage [ I ":I References b. Compute the degree of nancial leverage. (Round your answer to 2 decimal places.) Degree of nancial leverage I I c. Compute the degree of combined leverage. (Round your answer to 2 decimal places.) M cr'aw