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Based on the following income statement: Sales 8,000,000 VC 2,500,000 FC 3,000,000 Depreciation 400,000 EBIT 2,100,000 Interest ($10,000,000 at 9%) 900,000 EBT 1,200,000 Tax (40%)
Based on the following income statement:
| Sales | 8,000,000 |
| VC | 2,500,000 |
| FC | 3,000,000 |
| Depreciation | 400,000 |
| EBIT | 2,100,000 |
| Interest ($10,000,000 at 9%) | 900,000 |
| EBT | 1,200,000 |
| Tax (40%) | 480,000 |
| Net Income | 720,000 |
1. What percentage change in EBIT would result from a 10% decrease in sales? What percentage change in EPS would result from a 10% decrease in sales?
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