The Sterling Tire Company's income statement for 20XX is as follows: 27 STERLING TIRE COMPANY Income Statement Year ended December 31, 20xx Sales (50,000 tires at $65 each) Less: Variable costs (50,000 tires at $40) $ 3,250,000 2,000,000 01:35:55 Contribution margin Less: Fixed costs 1,250,000 1,050,000 Earnings before interest and taxes (EBIT) Interest expense 200,000 75,000 Earnings before taxes (EBT) Income tax expense (35%) 125,000 43, 750 Earnings after taxes (EAT) S 81,250 h 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