You have developed the following income statement for your corporation which represents the most

recent year's operations which ended yesterday.

Using the information provided, please answer the questions below.

a$.$ Calculate the degree of operating leverage for the firm. $(2$ marks$).$ Please round your final answer

to $2$ decimals.

b$.$ Calculate the degree of financial leverage for the firm. $(2$ marks$).$ Please round your final answer to

$2$ decimals.

c$.$ Calculate the degree of combined leverage for the firm. $(2$ marks$).$ Please round your final answer

to $2$ decimals.

d$.$ If the company can increase their sales by $25\%,$ what percentage increase in EBIT would you expect

to observe? $(2$ marks$)$

e$.$ If the company can increase their sales by $25\%,$ what percentage increase in EPS would you expect

to observe? $(2$ marks$)$

f$.$ If the sales increase by $25\%,$ what will the new EPS be$?(2$ marks$)$

g$.$ If the company's sales decrease by $25\%,$ what will the new EPS be$?(2$ marks$)$

h$.$ If EBIT increases by $5\%,$ what will the new EPS be$?(2$ marks$)$

i$.$ If the company were to reduce its reliance on debt financing such that interest expense were cut in

half, how would this affect your answer to part $($d$)?($ii$)$ part $($e$)?(4$ marks$)$