Delsing Canning Company is considering an expansion of its facilities Its current income statement is as follows Sales vanable costs (50% of sales) Fixed costs Earnings before interest and taxes (EBIT) interest (10% cost) Eanings before taxes (EBT) Tax (35%) $ 5,700,000 2,850,000 1,870,000 $ 980,000 340,000 $ 640,000 224,000 $ 416,000 270,000 $ 1.54 Eamings after taxes (EAT) Shares of common stock Earnings per share The company is currently financed with 50 percent debt and 50 percent equity (common stock, par value of $10). In order to expand the facilities, Mr. Delsing estimates a need for $2.7 million in additional financing. His investment banker has laid out three plans for him to consider 1. Sell $2.7 million of debt at 9 percent 2. Sell $2.7 million of common stock at $25 per share. 3. Sell $1.35 million of debt at 8 percent and $1.35 million of common stock at $30 per share Variable costs are expected to stay at 50 percent of sales, while fixed expenses will increase to $2,370,000 per year Delsing is not sure how much this expansion will add to sales, but he estimates that sales will rise by $1.35 million per year for the next five years Delsing is interested in a thorough analysis of his expansion plans and methods of financing He would like you to analyze the following a. The break-even point for operating expenses before and after expansion (in sales dollars) (Enter your answers in dollars not in millions, i.e, $1,234,567.) Break-Even Point Before expansion After expansion