The Sterling Tire Company's income statement for 20XX is as follows: STERLING TIRE COMPANY Income Statement Year ended December 31, 20xx Sales (50,000 tires at $65 each) Less: Variable costs (50,000 tires at $40) $ 3,250,000 2,000,000 Contribution margin Less: Fixed costs 1,250,000 1,050,000 Earnings before interest and taxes (EBIT) Interest expense 200,000 75,000 Earnings before taxes (EBT) Income tax expense (35%) 125,000 43,750 Earnings after taxes (EAT) $ 81,250 Given this income statement, compute the following: a. Degree of operating leverage. (Round the final answer to 2 decimal places.) DOL b. Degree of financial leverage. (Round the final answer to 2 decimal places.) DFL 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 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? O DFL O DOL 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