1. Operating income is not the same thing as earnings before interest and taxes (EBIT).

True or False

2. The lower a firm's break-even point, the lower amount of quantity needs to be sold in order to reach a profit of zero.

True or False

3. In 2015, Turnpoint Inc. had net income of $400,000, assets of $5,000,000, sales of $2,000,000, and debt of 2,000,000. In 2016, Turnpoint Inc. had net income of $700,000, assets of $4,000,000, sales of $1,300,000, and debt of 2,000,000. Did Turnpoint Inc's return on equity improve from 2015 to 2016? (Please Explain Work Done To Get Answer)

A. No

B. Yes

C. Stayed the same

D. Not enough information to answer