The following is information for three local auto dealers:

a. Using the information given in the above table, construct income statements for each company and the industry average. Assume that each company faces a tax rate of 35%.
b. Calculate the break-even points and the degrees of operating, financial, and combined leverage for each company and the industry average.
c. Compare the companies to each other and the industry average. What conclusions can you draw about each operation?

Bell'sJunior's Europe's Industry Domestics Used Best Average Average Selling Price Unit Sales Interest Expense Variable Costs (% of Sales) Fixed Costs Preferred Dividends Common Shares S34,650 S26,730 S51,480 $29,700 1,125 742,500990,000 2,970,000 1,485,000 48% 9,000,0006,300,000 18,000,000 9,900,000 270,000 4,500,0007,200,0002,700,000 6,300,000 1,350 1.665 765 60% 45% 40% 900.000 540.000