Mickey's Wizarding Co. Is debating between a leveraged and an unleveraged capital structure. The all-equity capital Structure would consist of 150,000 shares of stock. The debt and equity option would consist of 90,00 shares of stock plus $1,080,000 of debt with an interest of 8 percent. What is the break-even level of earnings before interest and taxes between these two options? ignore taxes

a. $216,000

b. $ 92,400

c. $237,000

d. $158,000

e $165,875