The Sterling Tire Companys income statement for 20XX is as follows: STERLING TIRE COMPANY Income Statement Year ended December 31, 20XX Sales (30,000 tires at $45 each) $ 1,350,000 Less: Variable costs (30,000 tires at $20) 600,000 Contribution margin 750,000 Less: Fixed costs 600,000 Earnings before interest and taxes (EBIT) 150,000 Interest expense 75,000 Earnings before taxes (EBT) 75,000 Income tax expense (30%) 22,500 Earnings after taxes (EAT) $ 52,500 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.) DCL 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? DOL DFL 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 Next Visit question mapQuestion 13 of 30 Total 13 of 30 Prev