From the Following Income Statement for 2005,calculate:
A)Degree of Financial $12 / 31 / 2015$

Essay

From the following income statement for 2005,calculate:
A)Degree of financial leverage
B)Degree of operating leverage
C)Degree of combined leverage
Income Statement
for the year ended $12 / 31 / 2015$
$\begin{array}{lr}\text { Sales } & \$ 440,000 \\\text { Variable cost } & 240,000\\\text { Contribution margin } & 200,000 \\\text { Fixed costs } & 96,000 \\ \text { EBIT } & 104,000 \\\text { Interest } & 19,200\\\text { EBT } & 84,800 \\\text { Taxes @35\% } & 29,680 \\\text { Net Income } & \$ 55,120\\\text { Shares outstanding } & 16,000 \\\text { EPS } & \$ 5.52\end{array}$