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The Sterling Tire Company's income statement for 20X1 is as follows STERLING TIRE COMPANY Income Statement For the Year Ended December 31, 20X1 Sales (21,000

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The Sterling Tire Company's income statement for 20X1 is as follows STERLING TIRE COMPANY Income Statement For the Year Ended December 31, 20X1 Sales (21,000 tires at $62 each) Variable costs (21,000 tires at $31) Fixed costs Earnings before interest and taxes (EBIT) Interest expense Earnings before taxes (EBT) Income tax expense (20%) $ 1,302,000 651,000 410,000 $ 241,000 50,500 $ 190,500 38,100 $ 152,400 Earnings after taxes (EAT) a. Compute the degree of operating leverage. (Round your answer to 2 decimal places.) Degree of operating leverage b. Compute the degree of financial leverage. (Round your answer to 2 decimal places.) Degree of financial leverage 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. (Round your answer to the nearest whole number.) Break-even point units

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