STERLING TI… Show more The Sterling Tire Company’s income statement for 2010 is as follows: STERLING TIRE COMPANY STERLING TIRE COMPANY Income Statement Income Statement For the Year Ended December 31, 2010 For the Year Ended December 31, 2010 Sales (23,000 tires at $66 each) $ 1,518,000 Less: Variable costs (23,000 tires at $33) 759,000 Fixed costs 430,000 Earnings before interest and taxes (EBIT) 329,000 Interest expense 51,500 Earnings before taxes (EBT) 277,500 Income tax expense (30%) 83,250 Earnings after taxes (EAT) $ 194,250 (a) Compute the degree of operating leverage. (Enter only numeric value rounded to 2 decimal places.) Degree of operating leverage (b) Compute the degree of financial leverage. (Enter only numeric value rounded to 2 decimal places.) Degree of financial leverage (c) Compute the degree of combined leverage. (Enter only numeric value rounded to 2 decimal places.) Degree of combined leverage (d) Compute the break-even point in units. (Enter only numeric value rounded to nearest whole number.) Break-even point units • Show less