HELP1

variable costs of production are $1, and fixed production costs are $12,000. (To ease the calculation, assume no income tax.) a. What is the operating income (EBIT) for both firms? Round your answers to the nearest dollar. Firm A: $ Firm B:$ b. What are the earnings after interest? Round your answers to the nearest dollar. Firm A:$ Firm B:$ you derived in part b. Round your answers to one decimal place. Firm A: Firm B: d. Why are the percentage changes different? The answers differ because Firm A uses | while Firm B uses . The successful use of magnifies the percentage increase in earnings when sales expand