The Harding Company manufactures skates. The company's income statement for 2010 is as follows:

HARDING COMPANY

Income Statement

For the Year Ended December 31, 2010

Sales (10,000 skates @ $50 each) .................................................... $500,000

Less: Variable costs (10,000 skates at $20) ........................................200,000

Fixed costs ...........................................................................................150,000

Earnings before interest and taxes (EBIT) ..........................................150,000

Interest expense .....................................................................................60,000

Earnings before taxes (EBT) ................................................................90,000

Income tax expense (40%) ...................................................................36,000

Earnings after taxes (EAT) ................................................................$ 54,000

Given this income statement, compute the following:

a. Degree of operating leverage.

b. Degree of financial leverage.

c. Degree of combined leverage.

d. Break-even point in units (number of skates).