The Sterling Tire Company's income statement for 20XX is as follows: STERLING TIRE COMPANY Income Statement Year ended December 31, 20XX Sales (35,000 tires at $50 each) Less: Variable costs (35,000 tires at $25) $ 1,750,000 875,000 875,000 750,000 8 Contribution margin Less: Fixed costs Earnings before interest and taxes (EBIT) Interest expense 125,000 25,000 Earnings before taxes (EBT) Income tax expense (30%) 100,000 30,000 $ 70,000 Earnings after taxes (EAT) 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.) DOL X b. Degree of financial leverage. (Round the final answer to 2 decimal places.) DFL c-1. Degree of combined leverage (Do not round the intermediate calculations. Round the final answer to 2 decimal places.) DCL X -5 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? ODEL DOL d. Break-even point in units Round the final answer to the nearest whole number) Break even point Lures 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 EBY 22 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