Answer:
break even EBIT is $717,240.13
Explanation:
given data
stock outstanding = 230000 shares
stock outstanding = 224478 shares
debt outstanding = $210000
interest rate = 8.2 percent
to find out
What is the break even EBIT
solution
we get break even EBIT is here express as

EBIT × 224478 = 230000 × ( EBIT - 17220 )
solve it we get
EBIT = $717,240.13
so break even EBIT is $717,240.13
Answer:
The changes suggested increase income by 16,000 therefore is a good idea to made the changes
Explanation:
Your Mistake is that fixed expenses should remain constant with a sales increase
Current New
Sales $800,000 $ 912,000
Variable $ 480,000 $ 576,000
Contribution $ 320,000 $ 336,000
<u>Fixed $ 270,000 </u><u><em> $ 270,000 </em></u>
Net Income $ 50,000 <em> $ 66,000</em>
<em></em>
<em></em>