(Leverage and EPS) You have developed the following pro forma income statement for your corporation: B It represents the most recent year's operations, which ended yesterday. Your supervisor in the controller's office has just handed you a memorandum asking for written responses to the following questions: iple point at you wa ty Alert paz We've aria. Below a. If sales should increase by 30 percent, by what percent would earnings before interest and taxes and net income increase? b. If sales should decrease by 30 percent, by what percent would earnings before interest and taxes and net income decrease? c. If the firm were to reduce its reliance on debt financing such that interest expense were cut in half, how would this affect your answers to parts a and b? a. If sales should increase by 30%, the percentage change in earnings before interest and taxes is %. (Round to two decimal places.) week! artunities: Avenue, G ty Alert paz We've found aria. Below are sa Sales $ 45,717.000 (22,835,000) $ 22,882,000 (9.161.000) week! ortunities: 577 3r Avenue, Gowanus Variable costs Revenue before fixed costs Fixed costs EBIT Interest expense Earnings before taxes Taxes (50%) $ 13,721,000 (1,409.000) ouler and more wser FREE SHIPP LIP99 WOMEN SH $ 12,312,000 (6.156,000) Net Income 6.156.000 Race and Ethnic S atulate Dr. Greene Ladan