Using the income statement below, compute the following items. Round answers to two decimal places. $ Sales 720,000 Variable costs 288,000 Contribution margin 432,000 Fixed operating costs Earnings before interest and taxes Interest expense Earnings before taxes Taxes (15%) 280,000 152,000 30,400 121,600 18,240 $ 103,360 Earnings after taxes Note: The company sold 12,000 units during the year Required: 1. Calculate the breakeven point in sales dollars, assuming that interest is a fixed costs (2 marks) 2. Assuming the company would like to have a minimum of $200,000 in earning before taxes. a) What is the minimum sales amount in dollars that will need to be maintained? (2 marks) b) How many units would they need to sell? (1 mark) 3. a) Calculate the Degree of Operating Leverage (2 marks) b) Calculate the Degree of Financial Leverage (2 marks) c) Calculate the Degree of Combined Leverage (2 marks) 4. Using the appropriate degree of leverage from above and assuming that sales decreased by 25%