Part 2-Problems 31. The Sinsey Nattic Redds Company is planning to increase productive capacity. Sales last year were $1,000,000 and with its greater eapacity, sales are expected to reach $1,600,000 on which the EBIT would be 1.5%, or $200,000, if the expansion were undertaken. Rafure the expansion the balance sheet of the company was as follows: a) What is the financial break-even level of EBIT for the two financing alternatives? ( 6 points) b) If the projected EBIT were above the financial break-even level of EBIT, which method of financing would result in higher E.P.S.? (2 points) c) Under each of the financing alternatives, what is the projected earnings per share (E.P.S.)? (2 points)