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EBIT Sensitivity Stewart Industries sells its finished product for 59 27 permits fred operating costs are $21200, and the variable operating cost per unit is

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EBIT Sensitivity Stewart Industries sells its finished product for 59 27 permits fred operating costs are $21200, and the variable operating cost per unit is 5449 a. Calculate the firm's eamings before interest and taxes (EBIT) for sales of 11.000 units b. Calculate the tem's EBIT for sales of 8.000 and 14,000 units respectively c. Calculate the percentage changes in sales (from the 11,000 unit base level) and associated percentage changes in EBIT for the shifts in sales indicated in part(b) d. On the basis of your findings in part (c), comment on the sensitivity of changes in EBIT in response to changes in sales a. The firm's earnings before interest and taxes is 5 (Round to the nearest dolar) b. The EBIT for the 8,000 units level is (Round to the nearest dollar) The EBIT for the 14,000 units level is $(Round to the nearest dolla.) c. The change in sales as a percentage for the 3.000 units level is Round to one decimal place) The change in sales as a percentage for the 14,000 units leves Round to one decuma place The change in EBIT as a percentage for the 8.000 units leves Round to one decimal place) The change in EBIT as a percentage for the 14.000 units levels Round to one decimal place d. On the basis of your findings in parte comment on the sensitivity of changes EBIT i response to changes in sales. (Select the best answer below) Click to select your answers EBIT Sensitivity Stewart Industries solls is finished product for $927 perts fred operating costs are 521,200, and the variable operating cost per unit is 54 49 a. Calculate the firm's earnings before interest and taxes (EBIT) for sales of 11.000 units b. Calculate the firm's EBIT for sales of 3,000 and 14,000 units, respectively c. Calculate the percentage changes in sales from the 11,000 unit base level) in associated percentage changes in EBIT for the shit in sales indicated in part (b) d. On the basis of your findings in part (c) comment on the sensitivity of changes in EBIT in response to changes in sales c. The change in sales as a percentage for the 8.000 units leves (Round to decimal place) The change in sales as a percentage for the 14,000 units leves (Round to one decimal place) The change in EBIT as a percentage for the 8,000 units Round to one decimal place) The change in EBIT as a percentage for the 14.000 unts level is Round to one decimal place) d. On the basis of your findings in particle comment on the sensitivity of changes in EBIT in response to changes in sales (Select the best answer below) O A EBIT is less sensitive to changing sales levels. It increases decreases that as much as sales OB. Changes in sales have no effect on EBIT as long as the costs are the same OCEBIT and sales are equally sensitive to changing sales wvels they incon decrease the same as a OD EBIT is more sensitive to changing sales teves it increases decreases about too as much as sales Click to select your answers

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