Question: EBIT Sensitivity   Stewart Industries Sells Its Finished Product For $ 8.71 Per Unit. Its Fixed Operating Costs Are $ 21 Comma 600 ​, And The Variable Operating Cost Per Unit Is $ 4.85 . A. Calculate The​ Firm’s Earnings Before Interest And Taxes​ (EBIT) For Sales Of 8 Comma 000 Units. B. Calculate The​ Firm’s EBIT For Sales Of 7 Comma 000 …

EBIT Sensitivity   Stewart Industries sells its finished product
for
$ 8.71
per unit. Its fixed operating costs are
$ 21 comma 600
​,
and the variable operating cost per unit is
$ 4.85
.
a. Calculate the​ firm’s earnings before interest and taxes​
(EBIT) for sales of
8 comma 000
units.
b. Calculate the​ firm’s EBIT for sales of
7 comma 000
and
9 comma 000
​units, respectively.
c. Calculate the percentage changes in sales​ (from the
8 comma 000
​-unit
base​ level) and associated percentage changes in EBIT for the
shifts in sales indicated in part
​(b​).
d. On the basis of your findings in part
​(c​),
comment on the sensitivity of changes in EBIT in response to
changes in sales.