Question: EBIT: WalkAbout Kangaroo Shoe Stores forecasts that it will sell 9,500 pairs of shoes next year. The firm buys its shoes for $50 per pair

EBIT: WalkAbout Kangaroo Shoe Stores forecasts that it will sell 9,500 pairs of shoes next year. The firm buys its shoes for $50 per pair from the wholesaler and sells them for $75 per pair. If the firm will incur fixed costs plus depreciation and amortization of $100,000, then what is the percent increase in EBIT if the actual sales next year equal 11,500 pairs of shoes?

Selling Price	$75
Variable Cost	$50
Fixed Cost (incl. depreciation)	$100,000

Forecasted Sales	9500	pairs	11500

EBIT

Percent Increase in EBIT=

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