(a) If the Operating Leverage for Cuddles Inc. is 4, and the company's sales volume decreases from 100,000 units to 95,000 units, explain the impact on the Income Statement of this decrease in sales volume. Include a numeric (percentage) and a brief (four to ten words) written answer. (3 points) (b) Calculate the financial leverage, for Cuddles Inc. using the income statement data below. Interpret your answer with one or two short sentences. (2 points) Cuddles Inc Income Statement For the year-ended December 31, 2021 Sales Revenue COGS Gross Profit Operating Expenses EBIT Interest Expense EBT (Earnings Before Tax) Income Tax Expense EAT (Earnings After Tax) $ 1,000,000 400,000 600,000 380,000 220,000 170,000 50,000 40,000 10,000