IndividualFinancing Strategy ProblemsPrepare a response to Problem 1 in Ch. 20 o

IndividualFinancing Strategy ProblemsPrepare a response to Problem 1 in Ch. 20 of Basic Finance.NOTE: STUDENTS OFTEN GET THIS WRONG BY NOT SELECTING THE RIGHT TEXT WHICH IS: BASIC FINANCEA.) What is the operating income (EBIT) for both firms?B.) What are the earnings after interest?C.) If sales increase by 10 percent to 11000 units by what percentage will each firms earnings after interest increase? To answer the question determine the earnings after taxes and compute the percentage increase in these earnings from the answers you derived in part b.D.) Why are the percentage changes different?