Friday

November 28, 2014

November 28, 2014

Posted by **gail** on Sunday, February 26, 2012 at 4:22pm.

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 firm's earnings after interest income? To answer the question, determine the earnings after taxed and compute the percentage increase in these earnings from the answers you derived in part b.

D. Why are the percentage changes different?

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