The Sterling Tire Company's income statement for 20XX is as follows: STERLING TIRE COMPANY Income Statement Year ended December 31, 20XX Sales (55,000 tires at $70 each) Less: Variable costs (55,000 tires at $50) Contribution margin Less: Fixed costs Earnings before interest and taxes (EBIT) Interest expense Earnings before taxes (EBT) Income tax expense (35%) Earnings after taxes (EAT) $ 3,850,000 2,750,000 1,100,000 900,000 200,000 75,000 125,000 43,750 $ 81,250 Saved He Given this income statement, compute the following: a. Degree of operating leverage. (Round the final answer to 2 decimal places.) DOL X 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.) Chapter 5 Saved a. Degree of operating leverage. (Round the final answer to 2 decimal places.) DOL X b. Degree of financial leverage. (Round the final answer to 2 decimal places.) DFL X .com%252Fmghmiddleware%252Fmheproducts%252FlmsClose... c-1. Degree of combined leverage. (Do not round the intermediate calculations. Round the final answer to 2 decimal places.) DCL 7:13 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 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 Dronk on noint concidoring the interact ovnence ac fivnd cort Prev 3 of 5 Next > Help Save & Exit 7:02 DCL X ns. Round the final answer to 2 decimal places.) 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