The Sterling Tire Company's income statement for 20XX is as follows: STERLING TIRE COMPANY Income Statement Year ended December 31, 20XX Sales (30,000 tires at $45 each) Less: Variable costs (30,000 tires at $20) $ 1,350,000 600,000 Contribution margin Less: Fixed costs 750,000 600,000 Earnings before interest and taxes (EBIT) Interest expense 150,000 50,000 Earnings before taxes (EBT) Income tax expense (35%) 100,000 35,000 Earnings after taxes (EAT) $ 65,000 Given this income statement compute the following: a. Degree of operating leverage (Round the final answer to 2 decimal places.) DOL 15 X b. Degree of financial leverage (Round the final answer to 2 decimal places.) DFU M1501 X ofil Given this income statement, compute the following: o. Degree of operating leverage (Round the final answer to 2 decimal places.) DOL DFL b. Degree of financial leverage (Round the final answer to 2 decimal places.) 150 X c-1. Degree of combined leverage. (Do not round the intermediate calculations. Round the final answer to 2 decimal places.) 750 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.) DCL EBIT 1001 150 EBT C-3. Does financial or operating leverage have the greater impact? DOL DFL DEL 1.50 X c-1. Degree of combined leverage. (Do not round the intermediate calculations. R DCL 7.50 X C-2. Using your answers to a. and b. calculate the percentage increase in EBIT and (Do not round the intermediate calculations. Round the final answers to 2 decim EBIT 100% 150 % C-3. Does financial or operating leverage have the greater impact? DOL O DFL h d. Break-even point in units. (Round the final answer to the nearest whole number Break-even point 24000 tires e. Break-even point considering the interest expense as a fixed cost. Break-even point 26000 tires