The Sterling Tire Company's income statement for 20XX is as follows: STERLING TIRE COMPANY Income Statement Year ended December 31, 20xx Sales (25,000 tires at $40 each) Less: Variable costs (25,000 tires at $15) $ 1,000,000 375,000 Contribution margin Less: Fixed costs 625,000 500,000 Earnings before interest and taxes (EBIT) Interest expense 125,000 75,000 Earnings before taxes (EBT) Income tax expense (40%) 50,000 20,000 Earnings after taxes (EAT) $ 30,000 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 DFL 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 volum (Do not round the intermediate calculations. Round the final answers to 2 decimal places.) EBIT c-3. Does financial or operating leverage have the greater Impact? ODOL ODFL 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 Pro 1 na Newt