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 (10,500 skates @ $60 each)	$ 630,000
Variable costs (10,500 skates at $25)	262,500
Fixed costs	200,000
Earnings before interest and taxes (EBIT)	$ 167,500
Interest expense	62,500
Earnings before taxes (EBT)	$ 105,000
Income tax expense (30%)	31,500
Earnings after taxes (EAT)	$ 73,500

1. Compute the degree of operating leverage.

   Note: Round your answer to 2 decimal places.

2. Compute the degree of financial leverage.

   Note: Round your answer to 2 decimal places.