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The Sterling Tire Compony's income statement for 2 0 XX is as follows: Given this income statement, compute the following: a . Degree of opersting
The Sterling Tire Compony's income statement for XX is as follows:
Given this income statement, compute the following:
a Degree of opersting leversge. Round the final answer to decimal places.
DOL
b Degree of financial leveroge. Round the final answer to decimal places.
DFL
c Degree of combined leveroge. Do not round the Intermedlate calculations. Round the final answer to decimal places.
c Using your answers to and b colculate the percentoge incresse in EBIT and EBT from a percent incresse in sales volume.
Do not round the intermediate calculations. Round the final answers to decimal places.
c Does financial or operating leverage have the grester impact?
DFL
DOL
d Breakeven point in units. Round the final answer to the nearest whole number.
Breakeven point
tires
e Breskeven point considering the interest expense os a fixed cost.
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