Contrail Air, Inc., is looking at two capital structures. Plan A is an all equity with 500,000 shares outstanding Plan B is a levered plan with 320,000 shares outstanding and debt of $3,467,000 outstanding. The interest rate on the debt is 8 percent, and there are no taxes. 1. If EBIT is $500,000, which plan will result in the higher EPS? 2. If EBIT is $800,000, which plan will result in the higher EPS? 3. What is the break-even EBIT? Input Area: Plan I Shares outstanding 500,000 Plan lI Shares outstanding Debt outstanding Interest rate 320,000 3,476,000 8% a. EBIT b. EBIT 500,000 800,000 Output Area NI EPS Plan l Plan lI b. Plan Plan I C. Breakeven EBIT