The Sterling Tire Company's income statement for 20XX is as follows: STERLING TIRE COMPANY Income Statement Year ended December 31, 2exx Sales (50,000 tires at $65 each) Less: Variable costs (50,000 tires at $35) $ 3,250,000 1,750,000 Contribution margin Less: Fixed costs Earnings before interest and taxes (EBIT) Interest expense 1,500, eee 1,200,000 8:59 300,eee 6e, eee Earnings before taxes (EBT) Income tax expense (34%) 240, eee 81,600 Earnings after taxes (EAT) $ 158,480 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 X c-1. Degree of combined leverage (Do not round the intermediate calculations. Round the final answer to 2 decimal places.) Prey 1 of 18 Next > c-1. Degree of combined leverage. (Do not round the intermediate calculations. Round the final answer to 2 decimal places.) DCL 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? ODFL 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 arch e O .C