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    income statement - calculate Break-even point

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    Need to see how these are calculated.

    The Douglas Company manufactures ladders. The company's income statement for 2001 is as follows:
    Douglas Company Income Statement for Year Ended December 31, 2001.
    Sales (10,000 ladders @ $50 each) $500,000
    Less: Variable costs (10,000 ladders at $20) 200,000
    Fixed costs 150,000
    Earnings before interest and taxes (EBIT) 150,000
    Interest expense 60,000
    Earnings before taxes (EBT) 90,000
    Income tax expense (40%) 36,000
    Earnings after taxes (EAT) $54,000
    Given this income statement, compute the following:
    Degree of operating leverage.
    Degree of combined leverage.
    Break-even point in units (number of ladders).

    Please see attached.

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