What increase would conserve ltd experience in ebit

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Given the following information for Conserve Ltd. for the year 2020:

(000)

Sales (100,000 units) $2,000,000

Variable costs 1,400,000

Contributions margin $ 600,000

Fixed manufacturing costs 200,000

EBIT $ 400,000

Interest 100,000

EBT $ 300,000

Problem (1) What increase would CONSERVE Ltd. experience in EBIT in terms of a percentage?

Problem (2) What increase would CONSERVE Ltd. experience in EBIT in terms of dollars?

Problem (3) What would be the new $ EBIT figure for CONSERVE Ltd?

Reference no: EM133007461

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