Sales	45,788,000.00
Variable Costs	-22,877,000.00
Revenue Before Fixed Costs	22,911,000.00
Fixed Costs	-9,205,000.00
EBIT	13,706,000.00
Interest Expense	-1,398,000.00
Earning before Taxes	12,308,000.00
Taxes (50%)	-6,154,000.00
Net Income	6,154,000.00

(Leverage and EPS)You have developed the following pro forma income statement for your corporation: . It represents the most recent year's operations, which ended yesterday. Your supervisor in the controller's office has just handed you a memorandum asking for written responses to the following questions: a.If sales should increase by 30% percent, by what percent would earnings before interest and taxes and net income increase? b.If sales should decrease by 30% percent, by what percent would earnings before interest and taxes and net income decrease? c.If the firm were to reduce its reliance on debt financing such that interest expense were cut in half, how would this affect your answers to parts a and b?