From the Following Income Statement for 2005, Calculate:
A) Degree $12 / 31 / 05$

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 $12 / 31 / 05$
$\begin{array}{lr}\text { Sales } & \$ 440,000 \\\text { Variable cost } & 240,000 \\\text { Contribution margin } & 200,000 \\\text { Fixed costs } & 96,000\\\text { EBIT } & 104,000 \\\text { Interest } &{1 9 , 2 0 0} \\\text { EBT } & 84,800 \\\text { Taxes } @ 35 \% & 29,680\\\text { Net income } & \$ 55,120 \\\text { Shares outstanding } & 16,000 \\\text { EPS } & \$ 5.52\end{array}$