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(Leverage and EPS) You have developed the following pro forma income statement for your corporation: it ropesents the most tecont yoar's operations, which ended yesterday,

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(Leverage and EPS) You have developed the following pro forma income statement for your corporation: it ropesents the most tecont yoar's operations, which ended yesterday, Your supervizor in the conteoler's office has just handed you a memorandum asking for written responses to the following questions: a. If avios should increase by 25 pereeck, by what percent would earnings belore inlerest and taxes and net inceme increase? b. If cales should decrease by 25 percont, by what percent would earnings bofore interest and taxes and not income decrease? c. If the ferm were to reduch its relance on debt financing such that interest expense were cut in hat, how would this affect your answers to pars a and b? 4. If sales should increate by 26%, the percentage change in eamings tefore intereat and taxes is W. (Round to two decimel places) Data table

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