Problem regarding the shares of stock outstanding

Reference no: EM131011180

BWP projects sales of 100,000 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 8%, and its marginal tax rate is 40%. There are 100,000 shares of stock outstanding which trade at their book value of $30. Compute BWP's contribution, contribution margin, EAT, DOL, and EPS.

Reference no: EM131011180

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