Delta projects sales of 100,000 units next year at an average price of $40 per unit. Variable costs are estimated at 70% of revenue, and fixed costs will be $1.2 million. BWP has $1 million in bonds outstanding on which it pays 8%, and its marginal tax rate is 40%. There are 100,000 shares of stock outstanding which trade at their book value of $30.

1. Compute Deltas contribution margin per unit, EAT, and EPS.
2. Calculate Deltas breakeven point in units and dollars
3. Calculate Deltas DOL, DFL and DTL.