The Harding Company manufactures skates

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

Sales (12,100 @ $92 each) $1,113,200

Less:

Variable costs (12,100 skates at $41) 496,100

Fixed costs 360,00

Earnings before interest and taxes(EBIT) 257,100

Interest expense 70,500

Earnings before taxes 186,600

Income tax expense (40%) 74,640

Earnings after taxes (EAT) $111,960

a. Compute the degrees of operating leverage (Round your answer to 2 decimal places.)

b. Compute the degree of financial leverage (Round your answer to 2 decimal places.)

c. Compute the degree of combined leverage (Round your answer to 2 decimal places.)

d. Compute the break-even point in units (number of skates) (Round your answer to the nearest whole number.)