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The Harmon Company manufactures skates. The company’s income statement for 2008 is as follows: ,,, HARMON COMPANY , Income Statement , For the Year Ended December 31, 2008 ,,,Sales (30,000 skates @ $25)…………………………………………………………………………………..$750,000 ,Less: Variable costs (30,000 skates at $7)…………………………………………………………….210,000 , Fixed Costs………………………………………………………………………… 270,000 , ,Earnings before interest and taxes (EBIT)…………………………………………….270,000 ,Interest expense…………………………………………………………………………………………………..170,000 ,Earnings before taxes (EBT)………………………………………………………………………………..100,000 ,Income tax expense (35%)……………………………………………………………………………………..35,000 ,Earnings after taxes (EAT) ………………………………………………………………………………….$65,000 ,,,Given this income statement compute the following: ,,a. Degree of operating leverage.,

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