What is strategic financial management? (4marks)

The Sosa Company produces baseball gloves. The company's Statement of Comprehensive Income for 2015 is provided: From the information provided below, describe and compute the following:

A) Degree of operating leverage b) Degree of financial leverage c) Degree of combined leverage

(7Marks) (7Marks) (7Marks)

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Sosa Company Statement of Comprehensive Income for the Year Ended December 31,2015	N$
Sales (20,000 gloves at N$ 60 each)	1,200,000
Less Variable costs (20,000 gloves at N$ 20)	400,000
less Fixed costs	600,000
Earnings Before Interest and Taxes (EBIT)	200,000
Less Interest expense	80,000
Earnings Before Taxes (EBT)	120,000
Earnings After Taxes (EAT)	84,000