The Sterling Tire Company's income statement for 20XX is as follows: STERLING TIRE COMPANY Income Statement Year ended December 31, 20XX Sales (20,000 tires at $80 each) Less: Variable costs (20,000 tires at $55) $ 1,600,000 1,100,000 Contribution margin Less: Fixed costs 500,000 300,000 Earnings before interest and taxes (EBIT) Interest expense 200,000 75,000 Earnings before taxes (EBT) Income tax expense (30%) 125,000 37,500 Earnings after taxes (EAT) $ 87,500 Given this income statement, compute the following: a. Degree of operating leverage. (Round the final answer to 2 decimal places.) DOL X 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.) ]X c-1. Degree of combined leverage (Do not round the intermediate calculations. Round the final answer to 2 decimal places.) DEL 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? 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? O DFL O DOL d. Break-even point in units. (Round the final answer to the nearest whole number.) Break even point e. Break-even point considering the interest expense as a fixed cost Break even point tires