Question: Sales $ 2 1 , 2 2 5 , 0 0 0 Variable costs $ 1 2 , 3 5 0 , 0 0 0

Sales $21,225,000
Variable costs $12,350,000
Fixed operating costs $6,360,000
EBIT $1,825,000
Interest expense $365,000
EBT $1,825,000
Taxes (20%) $365,000
Net Income $1,460,000
Shares outstanding 400,000
Earnings per share (EPS) $3.65
If the firm's operating leverage (OL)=2 and the financial leverage (FL)=1.1, if sales increase by 20%, by what percentage will EBIT change?
Report your answer to the nearest who percent and do not include the % sign. For example, if the answer is 15.23% report 15 as your final answer.

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