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The Sterling Tire Companys income statement for 20X1 is as follows: STERLING TIRE COMPANY Income Statement For the Year Ended December 31, 20X1 Sales (34,000

The Sterling Tire Companys income statement for 20X1 is as follows:

STERLING TIRE COMPANY
Income Statement
For the Year Ended December 31, 20X1
Sales (34,000 tires at $88 each) $ 2,992,000
Variable costs (34,000 tires at $44) 1,496,000
Fixed costs 540,000
Earnings before interest and taxes (EBIT) $ 956,000
Interest expense 57,000
Earnings before taxes (EBT) $ 899,000
Income tax expense (25%) 224,750
Earnings after taxes (EAT) $ 674,250

Compute the degree of operating leverage.

Note: Round your answer to 2 decimal places.

Compute the degree of financial leverage.

Note: Round your answer to 2 decimal places.

Compute the degree of combined leverage.

Note: Round your answer to 2 decimal places.

Compute the break-even point in units.

Note: Round your answer to the nearest whole number.

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