Consider the income statement for PQR Technologies for the fiscal year ending December 31, 2023, to analyze its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) and EBIT (Earnings Before Interest and Taxes).

PQR Technologies Income Statement	Year Ended December 31, 2023
Revenue
Product Sales	$1,000,000
Service Revenue	$200,000
Total Revenue	$1,200,000
Expenses
Cost of Goods Sold	$500,000
Selling Expenses	$300,000
General and Administrative Expenses	$150,000
Depreciation Expense	$40,000
Interest Expense	$20,000
Income Tax Expense	$70,000
Total Expenses	$1,080,000
Net Income	$120,000

Questions:

1. Calculate EBITDA and explain its relevance in evaluating the company's operating performance without the effects of financing and accounting decisions.
2. Determine EBIT and discuss its importance in understanding the company’s core operational profitability.