For the Year Ended December 31, 20X1 Sales (23,000 tires at $66 each) Variable costs (23,000 tires at $33) Fixed costs Earnings before interest and taxes (EBIT) Interest expense Earnings before taxes (EBT) Income tax expense (30%) Earnings after taxes (EAT) a. Compute the degree of operating leverage. Note: Round your answer to 2 decimal places. Degree of operating leverage b. Compute the degree of financial leverage. Note: Round your answer to 2 decimal places. _ Degree of financial leverage c. Compute the degree of combined leverage. Note: Round your answer to 2 decimal places. Degree of combined leverage $ 1,518,000 759,000 430,000 $ 329,000 51,500 $ 277,500 83,250 $ 194,250

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