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 IX b. Degree of financial leverage. (Round the final answer to 2 decimal places.)