$1.$ If EBIT equals $$200,000$ and interest equals $$40,000,$ what is the degree of financial leverage? A$.5\mathrm{.}33$x B$.1\mathrm{.}25$x C$.\mathrm{.}8125$x D$.4\mathrm{.}33$x $2.$ If a firm has the lowest possible degree of operating leverage and the lowest possible degree of financial leverage, then A$.$ DOL equals $1.$ and DFL equals $0.$ B$.$ DOL equals $0,$ and DFL equals $1.$ C$.$ DOL equals $1,$ and DFL equals $1.$ D$.$ None of the options Sales $(100\mathrm{.}000$ units$)$ Variable costs Contribution margin Fixed manufacturing costs Operating income Interest Earnings before taxes Taxes $(30)$ Net Income S$1\mathrm{.}000\mathrm{.}000200\mathrm{.}000700\mathrm{.}000200\mathrm{.}000500\mathrm{.}00075\mathrm{.}000425\mathrm{.}000127\mathrm{.}500$ S$297\mathrm{.}500$ A$.1\mathrm{.}40$x B$.1\mathrm{.}56$x C$.3\mathrm{.}33$x D$.222$x