Question: give me solution Intermediate Problems Degree of leverage (105-2 & 5-5) 10. The Sterling Tire Company's Income statement for 20X1 is as follows: STERLING TIRE

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Intermediate Problems Degree of leverage (105-2 & 5-5) 10. 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 (20,000 fires at 560 each) $1 20 01000 Less: Variable costs (20,000 fires at $30) . . . . . . Fixed costs. . Enmings belore interest and taxes (EBM 52001000 Interest expense . 501000 Earnings belore Lines (EBT) . 1507000 Income tax expense (30%) . 151010 Earnings after taxes (EAT) . . Given this income statement, compute the following: i. Degree of operating leverage. b. Degree of financial leverage. c. Degree of combined leverage. d. Break-even point in units

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