The Harding Company manufactures skates. The companys income statement for 20X1 is as follows: HARDING COMPANY Income Statement For the Year Ended December 31, 20X1 Sales (11,100 skates @ $72 each) $ 799,200 Variable costs (11,100 skates at $31) 344,100 Fixed costs 260,000 Earnings before interest and taxes (EBIT) $ 195,100 Interest expense 65,500 Earnings before taxes (EBT) $ 129,600 Income tax expense (30%) 38,880 Earnings after taxes (EAT) $ 90,720

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

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

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

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