The Sterling Tire Company's income statement for $20$XX is as follows:

STERLING TIRE COMPANY

Income Statement

Year ended December $31,20$xX

Given this income statement, compute the following:

a$.$ Degree of operating leverage. $($Round the final answer to $2$ decimal places.$)$

DOL

$|$X

b$.$ Degree of financial leverage. $($Round the final answer to $2$ decimal places.$)$

DFL

X

c$-1.$ Degree of combined leverage. $($Do not round the intermediate calculations. Round the final answer to $2$ decimal places.$)$

DCL

X

c$-2.$ Using your answers to a$.$ and b$.$ calculate the percentage increase in EBIT and EBT from a $20$ percent increase in sales volume.

$($Do not round the intermediate calculations. Round the final answers to $2$ decimal places.$)$

EBIT

EBT

c$-3.$ Does financial or operating leverage have the greater impact?

DOL

DFL

d$.$ Break$-$even point in units. $($Round the final answer to the nearest whole number.$)$

Break$-$even point

tires

e$.$ Break$-$even point considering the interest expense as a fixed cost.

Break$-$even point

tires