3] The Sterling Tire Company's Income statement for 20X1 is as follows:
STERLING TIRE COMPANY
Income Statement For the Year Ended December 31, 20x1
Sales (41,000 tires at $102 each) $ 4,182,000 units
Variable costs (41,000 tires at $51) 2,091,000
Fixed costs 610,000
Earnings before interest and taxes (EBIT) $1,481,000
Interest expense Earnings before taxes (EBT) 1,420,500
Income tax expense (30%) 426,150
Earnings after taxes (EAT) $994,350
Note: Round your answer to 2 decimal places.
a.Degree of operating leverage
b.Degree of financial leverage
c.Degree of combined leverage
d.Break-even point
Problem 5-10 (Algo) Degree of leverage [LO5-2, 5-5] The Stering Tire Company's income statement for 20x1 is as follows - Compute the degree of operaning leverage Note: Round your enswer to 2 decimal pleces. b. Compute the degree of financial leverage Note: Round your answer to 2 decimal places. c. Compute the degree of combined leverage. Note: Round your answer to 2 decimal places. d. Compute the break-even point in units. Note: Round your onswer to the nearest whole number 
