1. Consider the following sensitivity analysis of EBIT and earnings per share (EPS) where $34,000 is the expected level of EBIT after the acquisition and $20,000 is the recession level of EBIT that might be anticipated. What other information can be interpreted from the chart below?

EBIT	DEPS	EEPS
5,000	0.00	0.40
12,500	1.00	1.00
20,000	2.00	1.60		Recession Level EBIT (-22%)
34,000	3.87	2.72		Expected EBIT

Chart Title 4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 DEPS -EEPS