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  1. business
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  3. the sterling tire compony's income statement for 2

The Sterling Tire Compony's income statement for 20XX is as follows: Given this income...

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Accounting

The Sterling Tire Compony's income statement for 20XX is as follows:
Given this income statement, compute the following:
a. Degree of opersting leversge. (Round the final answer to 2 decimal places.)
DOL
x
b. Degree of financial leveroge. (Round the final answer to 2 decimal places.)
DFL
x
c-1. Degree of combined leveroge. (Do not round the Intermedlate calculations. Round the final answer to 2 decimal places.)
DCL
x
c-2. Using your answers to 0. and b. colculate the percentoge incresse in EBIT and EBT from a 20 percent incresse in sales volume.
(Do not round the intermediate calculations. Round the final answers to 2 decimal places.)
c-3. Does financial or operating leverage have the grester impact?
DFL
DOL
d. Break-even point in units. (Round the final answer to the nearest whole number.)
Break-even point
tires
e. Bresk-even point considering the interest expense os a fixed cost.
image

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