Your firm has 8,500 shares outstanding and pays taxes at a flat 20% rate. You expect annual sales to be $78,000 and the firm has annual interest obligations of $6,300. Calculate the EPS at this expected level of sales. Then, as a sensitivity analysis, calculate the EPS if sales are 25% higher than expected. What is the increase (in dollars) between the EPS at the high sales level and the expected sales level?

Group of answer choices

$1.84

$1.47

$1.69

$2.29