Sales $ 50,439,375 Variable costs (25,137,000) Revenue before fixed costs $ 25,302,375 Fixed costs (10,143.000) EBIT $ 15,159,375 (1,488.375) Interest expense Earnings before taxes $ 13,671,000 Taxes at 50% (6,835,500) Net income $ 6,835,500 Your supervisor in the controller's office has just handed you a memorandum asking for written responses to the following questions: (10 marks) a. At this level of output, what is the degree of operating leverage? b. What is the degree of financial leverage? c. What is the degree of combined leverage? d What is the firm's break-even point in sales dollars? e. If sales should increase by 30 percent, by what percent would earnings before taxes (and net income) increase