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The Harding Company manufactures skates. The company's Income statement for 20X1 HARDING COMPANY Income Statement For the Year Ended December 31, 20x1 Sales (11,300 skates
The Harding Company manufactures skates. The company's Income statement for 20X1 HARDING COMPANY Income Statement For the Year Ended December 31, 20x1 Sales (11,300 skates 8 $76 each) $ 858,800 Variable costs (11,300 skates at $33) 372,900 Fixed costs 280,000 Earnings before interest and taxes (EBIT) $ 205,900 Interest expense 66,500 Earnings before taxes (EBT) $ 139,400 Income tax expense (208) 27,880 Earnings after taxes (ET) $ 111,520 a. Compute the degree of operating leverage. (Round your answer to 2 decimal places.) Answer is complete and correct. Degree of operating leverage 2.36 Prey 1 of 10 Next > 30 CE 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-e point katos Prey 1 of 10 Nad > Ne S 4 3 5 7 9 W E R T Y A D S K G . Z N B NM
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