The Sterling Tire Company's income statement for 20X1 is as follows:

STERLING TIRE COMPANY

Income Statement

For the Year Ended December 31, 20X1

Sales (20,000 tires at $60 each)..........................$1,200,000

Less: Variable costs (20,000 tires at $30)...............600,000

Fixed costs.................................................400,000

Earnings before interest and taxes (EBIT)................200,000

Interest expense................................................50,000

Earnings before taxes (EBT)................................150,000

Income tax expense (30%)....................................45,000

Earnings after taxes (EAT)...............................$ 105,000

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.