Compute the earnings before interest and taxes

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Reference no: EM132071847

Wandel Inc. has forecasted sales of $300,000. The firm's fixed operating costs total $75,000 and its variable operating costs are equal to 70% of this sales level. The company needs to pay $12,000 in interest each period. Its tax rate is 40% and it has 10,000 shares.

a) Compute the earnings before interest and taxes (EBIT) for a sales level of $300,000

b) Compute Earnings after taxes and compute the EPS for that sales level.

Reference no: EM132071847

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