A firm has the following information for the last two years. Calculate its degree of financial leverage.

	This year	Last year
Sales	$1,500,000	$1,300,000
Operating costs	$900,000	$800,000
Net income	$150,000	$120,000
Number of shares outstanding	50,000	50,000

Allegra Inc. has one million shares outstanding. The company is considering the issue of debt of $15 million. The interest rate on this new debt issue will be 8%, and the number of shares after the debt issue will be reduced to 500,000. Given a corporate tax rate of 40%, what is the EBIT that will cause the firm's earnings per share to be indifferent between issuing and not issuing debt?