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The Harding Company manufactures skates. The company's Income statement for 20X1is as follows: $ HARDING COMPANY Income Statement For the Year Ended December 31, 20x1

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The Harding Company manufactures skates. The company's Income statement for 20X1is as follows: $ HARDING COMPANY Income Statement For the Year Ended December 31, 20x1 Sales (10,480 skates @ $58 each) Variable costs (10,480 skates at $24) Fixed costs Earnings before interest and taxes (EBIT) Interest expense Earnings before taxes (EBT) Income tax expense (2016) Earnings after taxes (EAT) $ 63.200 249,600 19e eee 163,600 62.ee 101.600 20.329 81, 282 $ $ a. Compute the degree of operating leverage. (Round your answer to 2 decimal places.) Degree of operating leverage D 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

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