Use the information given in the income statement to answer the question that follows.

Cute Camel Woodcraft Company
Income Statement
Years Ending December 31
	Year 2 (Forecasted)	Year 1
Net sales	18,750,000	$15,000,000
Fixed operating costs, except depreciation and amortization	(11,250,000)	(9,000,000)
Depreciation and amortization expenses	(600,000)	(600,000)
Net operating income (or EBIT)	6,900,000	$5,400,000
Interest	(1,035,000)	(540,000)
Earnings before taxes (or EBT)	5,865,000	$4,860,000
Taxes (40%)	(2,346,000)	(1,944,000)
Net Income	3,519,000	$2,916,000
Preferred dividends	(200,000)	(200,000)
Earnings available to common stockholders (EAC)	3,319,000	$2,716,000
Common dividends	(1,055,700)	(874,800)
Addition to retained earnings	$2,263,300	$1,841,200

Cute Camels before interest, taxes, depreciation, and amortization (EBITDA) value changed from __________ in Year 1 to _______ in Year 2.

Options for year 1

$6,000,000

7,344,000

8,316,000

14,400,000

Options for year 2

$10,419,000

7,500,000

19,785,000

14,769,000