wuculator About AN Course Name: Student ID: Course Number: The Harding Company manufactures skates. The company's income statement for 2013 is as follows: HARDING COMPANY Income Statement For the Year Ended December 31, 2013 Sales (10,500 skates @ $60 each) Less: Variable costs (10,500 skates at $25) Fixed costs Earnings before interest and taxes (EBIT) Interest expense Earnings before taxes (EBT) Income tax expense (30%) Earnings after taxes (EAT) $630,000 262,500 200.000 167,500 62.500 105,000 31,500 $73.500 Given this income statement, compute the following: a. Degree of operating leverage. b. Degree of financial leverage. c. Degree of combined leverage. d. Break-even point in units (number of skates). Solution Problem 5-4 Problem 5-11 Ready Type here to search O DE Solution Problem 5-11 Instructions Using the Income Statement (above) and the information (below), compute the degree of operating degree of financial leverage, degree of combined leverage, and the break-even point in units. Information: Unit sales Selling price Variable cost per unit 10,500 $60 $25 a. Degree of operating leverage times b. Degree of financial leverage times c. Degree of combined leverage times d. Break-even point in units skates