Basic Finance Chapter 20 Problem 1 - 42228

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a. What is the operating income (EBIT) for both firms.

b.  What are the earnings after interest.

C.  If sales increase by 10 percent to 11,000 units, by what percentage will each firms earning after interest increase?  To anser the question determine the earnings after taxes and compute the percentage increase in these earnings from the answers you derived in part b.

D.  Why are the percentages changed different.

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