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The Sterling Tire Company s income statement for 2 0 X 1 is as follows: STERLING TIRE COMPANY Income Statement For the Year Ended December
The Sterling Tire Companys income statement for X is as follows:
STERLING TIRE COMPANY
Income Statement
For the Year Ended December X
Sales tires at $ each $
Variable costs tires at $
Fixed costs
Earnings before interest and taxes EBIT $
Interest expense
Earnings before taxes EBT $
Income tax expense
Earnings after taxes EAT $
Compute the degree of operating leverage.
Note: Round your answer to decimal places.
Compute the degree of financial leverage.
Note: Round your answer to decimal places.
Compute the degree of combined leverage.
Note: Round your answer to decimal places.
Compute the breakeven point in units.
Note: Round your answer to the nearest whole number.
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