Delsing Canning Company is considering an expansion of its facilities. Its current income statement is as follows Sales Variable costs (S0% of sales) Fixed costs Eamings before interest and taxes (EBIT) Imerest (10% costo Eamings before taxes (EBT) Tax (30%) Eamings aftor taxes (EAT) Shares of oommon stock Eamings per share $ 6,500,000 3,250,000 s 1,300,000 600,000 800,000 240,000 $ 560,000 350,000 $ 1.60 The company is currently financed with 50 percent debt and 50 percent equity (common stock, par value of $10), In order to expand the faclities, Mr. Delsing estimates a need for $3.5 milion in additional financing. His investment banker has laid out three plans for him to consider Sell $3.5 million of debt at 11 percent 2 Sell $3.5 million of common stock at $25 per share 3 Sell $1.75 million of debt at 10 percent and $1.75 million of common stock at $40 per share Variable costs are expected to stay at 50 percent of sales, while fixed expenses wil increase to $2,450,000 per year. Delsing is not sure how much this expansion will add to sales, but he estimates that sales will rise by $1.75 milion per year for the next five years Delsing is interested in a thorough analysis of his expansion plians and methods of Sinancing 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 doilars not in millions, Le, $1,234,567,) Break-Even Point Belore expansion Afher expansion