-11. (Calculating leverage and EPS) You have developed the following pro forma income statement for your corporation. It represents the most recent year's operations, which ended yesterday. Your supervisor in the controller's office has just handed you a memorandum asking for written responses to the following questions: a. If sales increase by 25 percent, by what percentage will earnings before interest and taxes and net income increase? b. If sales decrease by 25 percent, by what percentage will earnings before interest and taxes and net income decrease? c. If the firm reduces its reliance on debt financing such that interest expense is cut in half, how does this affect your answers to parts a and b