Problem for Chapter 20 Use the following data to construct an income statement for Chery's posters Sales price Variable Cost Fixed costs Sales in Units $20 per unit $10 per unit $5,000 1,000 Required: Calculate the Earnings before Interest and Taxes (EBIT) for Cheryl's Posters using the data provided above. Prepare two pro forma income statements assuming: a 50% increase in sales (1,500) a 50% decrease in sales (500) What is the impact on earnings before interest and taxes (EBIT) of the 50% 2. 3, increase/decrease in sales? 4. Explain using the concept of leverage