$7.$ Finally, assume sales volume reaches $1,500,000$ units after Mike Anton$$s changes are put into place. What will the new figure be for earnings per share? Under the old plan, earnings per share at $1,500,000$ units would be $$1\mathrm{.}72.$

$$

Sles $(1,500,000$ units @ $$30$ per unit$)$ $$45,000,000$

$$ Total variable costs $(1,500,000$ units @ $$18\mathrm{.}80$ per unit$)$

Contribution margin

$$ Fixed costs $5,800,000$

Operating income

$$ Interest $(10\mathrm{.}75\%$ x $$12,000,000)$

Earnings before taxes

$$ Taxes $(35\%)$

Earnings after taxes

Shares $2,320,000$

Earnings per share

Genuine Motor Products