How Can I Solve this question

a. The break-even point for operating expenses before and after expansion (in sales dollars). (Enter the answers in dollars not in millions.) O Break-even point points Before expansion Skipped After expansion b. The DOL before and after expansion. Assume sales of $5.7 million before expansion and $6.7 million after expansion. (Round the final answers to 2 decimal places.) Print DOI Before expansion References After expansion c-1. The DFL before expansion at sales of $5.7 million. (Round the final answers to 2 decimal places.) DFL X c-2. The DFL for all three methods after expansion. Assume sales of $6.7 million. (Round the final answers to 2 decimal places.) DFL 100% Debt 100% Equity 50% Debt & 50% Equity X d. Compute EPS under all three methods of financing the expansion at $6.7 million in sales (first year) and $10.7 million in sales (last year). (Round the final answers to 2 decimal places.) EPS First year Last year 100% Debt 100% Equity 50% Debt & 50% Equity e. Not available in Connect.Problem 5-23 Phelps Canning Company is considering an expansion of its facilities. Its current income statement is as follows: Sales $5,796,666 Less: Variable expense (56% of sales) 2,856,666 Fixed expense 1,8?6,666 Earnings before interest and taxes (EBIT) 986,666 Interest (16% cost) 346,666 Earnings before taxes (EBT) 646,666 Tax (35%) 224,666 Earnings after taxes (EAT) $416,666 Shares of common stock 86,666 EPS $1.54 Phelps Canning Company is currently nanced with 50 percent debt and 50 percent equity {common stock). To expand facilities, Mr. Phelps estimates a need for $27 million in additional nancing. His investment dealer has laid out three plans for him to consider: 1. Sell $27 million of debt at 9 percent. 2. Sell $27 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 xed expenses will increase to $2,370,000 per year. Mr. Phelps 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 ve years. Mr. Phelps is interested in a thorough analysis of his expansion plans and methods of nancing. He would like you to analyze the following: a. The breakeven point for operating expenses before and after expansion n sales dollars}. {Enter the answers in dollars not in millions: Break-even int Before expansion 5. n-FI-ar- swam4m. it. v