You have developed the following pro forma income statement for your corporation:

Sales	$	45,651,000
Variable costs		(22,752,000)
Revenue before fixed costs	$	22,899,000
Fixed costs		(9,103,000)
EBIT	$	13,796,000
Interest expense		(1,313,000)
Earnings before taxes	$	12,483,000
Taxes (50%)		(6,241,500)
Net income	$	6,241,500

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?

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(Round to two decimal places for EVERY ANSWER. I did part A, just need B and C.

A .If sales should increase by 30%, the percentage change in earnings before interest and taxes is ________ 49.79%

If sales should increase by 30%, the percentage change in net income is ____55.03 %.

B. If sales should decrease by 30%, the percentage change in earnings before interest and taxes is ______%. (Round to two decimals places)

If sales should decrease by 30%, The percentage change in income is______%.