Using the income statement below, compute the following items. Carefully follow the formatting instructions given for each part.

Sales	$ 1,120,000
Variable costs	840,000
Contribution margin	280,000
Fixed operating costs	210,000
Earnings before interest and taxes	70,000
Interest expense (fixed)	50,000
Earnings before taxes	20,000
Taxes (25%)	5,000
Earnings after taxes	$ 15,000
Note: The company sold 40,000 units during the year

Required:

1.	$ Answer	(2 marks) Compute the break-even point in sales dollars. [Format: No $, no commas, no decimals]
2.	$ Answer	(2 marks) Compute the sales volume in dollars to give an income before tax of $60,000. [Format: No $, no commas, no decimals]
3.	Answer units	(1 mark) Compute the sales volume in units to give an income before tax of $60,000. (Round to nearest full unit)
4.	Answer	(2 marks) Compute the degree of operating leverage. (Round to one decimal place).
5.	Answer	(2 marks) Compute the degree of financial leverage. (Round to one decimal place).
6.	Answer	(2 marks) Compute the degree of combined leverage. (Round to one decimal place).