The Harding Company manufactures skates. The company's income statement for the 2014 is as follows:

For the year ended December 31, 2014

Sales (10,000 skates @ $50 each) .............$500,000

Less: Variable costs (10,000 skates at $20...$200,000

Fixed Costs................................. 150,000

-----------------------------------------------------

Earnings before interest and taxes (EBIT).... 150,000

Interest expense..............................60,000

-----------------------------------------------------

Earnings before taxes (EBT)...................90,000

Income tax expense (40%) ......................36,000

-----------------------------------------------------

Earnings after taxes (EAT)....................$ 54,000

Given this income statement, compute the following:

a.Degree of operating leverage

b.Degree of financial leverage

c.Degree of combined leverage

d.Break-even point in units (numbers of skates)