Company X has a sales price of $4.00 per unit and a variable cost of $3.40 per unit; fixed costs are $13,000, no debt, and sales of 250,000 units per year. Company Y has a sales price of $10.00 per unit and a variable cost of $7.00 per unit with fixed costs of $135,000 and sales of 200,000 units per year. Company Y also has interest payments of $60,000 annually. Both companies are in the 40% tax bracket. What is Company X's interest payment annually? and compare the risks of both companies.

Company X has a sales price of $4.00 per unit and a variable cost of $3.40 per unit; fixed costs are $13,000, no debt, and sales of 250,000 units per year. Company Y has a sales price of $10.00 per unit and a variable cost of $7.00 per unit with fixed costs of $135,000 and sales of 200,000 units per year. Company Y also has interest payments of $60,000 annually. Both companies are in the 40% tax bracket. Make sure you answer all 4 parts: a, b, and c.** Type your answers in the gray boxes below the question.* CompanyX Company Y Sales Price per unit Sales (units per year) Total Sales Variable Cost per unit Total Variable Costs Fixed Costs Tax Rate EBIT Interest Expense EBT Income Taxes (40%) Net Income 4.00 10. 00 250, 000 200, 000 $1, 000, 000 3. 40 $850, 000 13, 000. 00 2, 000, 000 7. 00 1, 400, 000 135, 000. 00 40% 40% $137, 000 $137, 000 $54,800 $82, 200 465, 000 $60, 000 $405, 000 $162, 000 $243, 000