Item	Base Sales
Sales	$500,000
Less: Total variable costs	200,000
Revenue before fixed costs	$300,000
Less: Total fixed costs	180,000
EBIT	$ 120,000
Less: Interest expense	$50,000
Earnings before taxes (EBT)	$70,000
Less: Taxes at 50%	$35,000
Net income	$35,000
Less: Preferred dividends	0
Earnings available to common shareholders (EAC)	$35,000
Number of common shares	10,500
Earnings per share (EPS)	$3.33

Given the information above, what would be the EPS if sales increased by a 20% ?

		$5.92
		$6.07
		$5.25
		$6.19