Bwp projects sales of 100000 units next year at an average


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 7%, and its marginal tax rate is 36%. There are 100,000 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.

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Financial Management: Bwp projects sales of 100000 units next year at an average
Reference No:- TGS01126459

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