R 9 SI A. (Leverage Analysis) You have developed the following analytical incomestatement for the Hugo Boss Corporation. It represents the most recent year'soperations, which ended yesterday el Sales 350.450.35 recasts 2000 He bore fred.com $25.102.375 se e SC THE 11 Fad.com 0 A BEIT $15.159,75 1411 $13,671.000 a to bifone T50% 16.02. 10.335.500 Net income w re M ta Your supervisor in the controller's office has just handed you a memorandum asking for written responses to the following questions: (10 marks) 1 At this level of output, what is the degree of operating leverage? 6. What is the degree of financial leverage? c. What is the degree of combined leverage? d. What is the firm's break-even point in sales dollars? c. If sales should increase by 30 percent, by what percent would earnings beforetaxes (and net income) increase? B. "Understanding Operating. Financial and Combined leverage is important inbusiness financial risk analysis. Elaborate the statement (500 words) (5 marks) R 9 SI A. (Leverage Analysis) You have developed the following analytical incomestatement for the Hugo Boss Corporation. It represents the most recent year'soperations, which ended yesterday el Sales 350.450.35 recasts 2000 He bore fred.com $25.102.375 se e SC THE 11 Fad.com 0 A BEIT $15.159,75 1411 $13,671.000 a to bifone T50% 16.02. 10.335.500 Net income w re M ta Your supervisor in the controller's office has just handed you a memorandum asking for written responses to the following questions: (10 marks) 1 At this level of output, what is the degree of operating leverage? 6. What is the degree of financial leverage? c. What is the degree of combined leverage? d. What is the firm's break-even point in sales dollars? c. If sales should increase by 30 percent, by what percent would earnings beforetaxes (and net income) increase? B. "Understanding Operating. Financial and Combined leverage is important inbusiness financial risk analysis. Elaborate the statement (500 words)