From the following income statement, calculate:
a) Degree of financial leverage.
b) Degree of operating leverage.
c) Degree of combined leverage.
For the Year Ended 12/31/2010:
Sales............................ $575,000
TVC.............................. 260,000
Fixed Costs...................... 94,000
EBIT............................ .221,000
Interest.......................... ..19,500
EBT............................ ..201,500
Taxes at 35% 70,525
Net Income................... ...130,975
Shares Outstanding............. 20,000
EPS................................. $6.55