Question
BWP projects sales of 100000 units next year at an average price of $50 per unit. Variable costs are estimated at 40% of revenue, and
BWP projects sales of 100000 units next year at an average price of $50 per unit. Variable costs are estimated at 40% of revenue, and fixed costs will be $2.4 million. BWP has $1 million in bonds outstanding, on which it pays 7%, and its marginal tax rate is 38%. There are 100000 shares of stock outstanding which trade at their book value of $30. Compute BWP's contribution, contribution margin, net income, DOL, and EPS. Round the answers to two decimal places. Enter your net income answer in whole dollars. For example, an answer of $1.2 million should be entered as 1,200,000, not 1.2.
Contribution per unit | $ |
Contribution Margin | % |
Net Income | $ |
DOL | |
EPS | $ |
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