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 (37,000 tires at $94 each) Variable costs (37,000 tires at $47) Fixed costs Earnings before interest and taxes (EBIT) Interest expense Earnings before taxes (EBT) Income tax expense (25%) Earnings after taxes (EAT) $ 3,478,000 1,739,000 570,000 $1,169,000 58,500 $1,110,500 277,625 $832,875 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