Question A: The following table contains financial information for Red Co (55%) Price per unit and fixed costs are expected to increase by an average annual rate of inflation of 3%. Also me that variable cos respectively e pereat of wales will remain constant at 60%. for 2018-2022 stume unit sales are projected to grow a rate of 20%, 18%, 16% and 14% for 2019-2021 respectively. Based on the above information and the information provided in the income statement below, complete the following income statement (1095) . Find out the operating break-even points in both units and dollars for 2018-3032 respectively (15%) How many units would the company need to sellis order to achieve earnings before interest and tase (EBIT) 530.007 (15%) C. Calculate changes in sales, EBIT and EPS 1 Red Co Ferthe Year Faded Dec 31, 2018 2018 2021 1,800,000 5 Sales Lase: Variable costs LossFired Costs Earnings Before Interest and Taces Less Interest Expense Earnings Before Taxes Taxes Net Income Less: Preferred Dividends Net Income Available to Common Sheet1 Sheet2 100.000 100.000 Sheet3 + Ready 100,000 100.000 100.000 100000 Net Income Less: Preferred Dividends Net Income Available to Common Common Shares Outstanding Earnings per Share Price per unit Unit sales Variable Costs as a Percent of Sales Assumptions $100.00 1.200.000 60% Projected Unit Sales Growth 1 Inflation Rate 2 Tax Rate 3 Interest Expense 4 Common Shares Outstanding 5 Break-even Point (Units) 16 Break-even Point (Dollars) #7 Expected EBIT of $200,000 35% 20% 3% 35% 4,000,000 10,000,000 35% 4,000,000 10,000,000 35% 4,000,000 10,000,000 4,000,000 10,000,000 35% 4,000,000 10,000,000 49 50 51 Change in Sales from Prior Year Change in EBIT from Prior Year Change in EPS from Prior Yew