Marks, Inc.'s sales are $350,000, its fixed costs equal $80,000, its variable costs are 20 percent...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Marks, Inc.'s sales are $350,000, its fixed costs equal $80,000, its variable costs are 20 percent of sales, the company's interest expense is $30,000, and its tax rate is 40 percent. If the company were able to increase its sales by 10 percent, by what percentage would the EBIT increase? a. 12 percent b. 16 percent c. 13 percent EBIT EBT 200 = 1.176 170 d. 15 percent e. 14 percent S-UC S-v-F 350-70 =1,4 350-70-80 page 10 S 350 VC (76 2800oo (M -FC (80) 200 EBIT -I (30) EBT 170 -T NI Marks, Inc.'s sales are $350,000, its fixed costs equal $80,000, its variable costs are 20 percent of sales, the company's interest expense is $30,000, and its tax rate is 40 percent. If the company were able to increase its sales by 10 percent, by what percentage would the EBIT increase? a. 12 percent b. 16 percent c. 13 percent EBIT EBT 200 = 1.176 170 d. 15 percent e. 14 percent S-UC S-v-F 350-70 =1,4 350-70-80 page 10 S 350 VC (76 2800oo (M -FC (80) 200 EBIT -I (30) EBT 170 -T NI
Expert Answer:
Posted Date:
Students also viewed these finance questions
-
Four hospitals located in one county are cooperating to establish a centralized blood-bank facility to serve them all. On an xy coordinate grid of the county, the hospitals are found at the following...
-
Find the current Ix in figure 2PFE-10. a. 1/2A b. 5/3A c. 3/2A d. 8/3A 12 V 30. 100
-
The following data pertain to the Quintana Manufacturing Company for the year ended December 31, 2005. Required: a. Prepare a cost of goods manufactured schedule for 2005. b. Prepare a cost of goods...
-
What is the equation for each of the following: (a) statement of earnings, (b) retained earnings component of the statement of changes in equity, (c) statement of financial position, and (d)...
-
Bjornson A/S of Norway has only one service department'a cafeteria, in which meals are provided for employees in the company's Milling and Finishing departments. The costs of the cafeteria are all...
-
View Policies Current Attempt in Progress Concord Inc., which produces a single product, has prepared the following standard cost sheet for one unit of the product. Direct materials ( 9 pounds a t $...
-
is the document it external or internal bank statement
-
The accounts receivable clerk is also responsible for handling cash receipts. Which principle of internal control is violated in this situation?
-
On June 5, Szabo Inc., a marble contractor, issued for cash 15,000 shares of \($18\) par common stock at \($24,\) and on August 7, it issued for cash 5,000 shares of \($10\) par preferred stock at...
-
_____ is a set of standard tests for fairness in disciplinary actionstests that were originally utilized in union grievance arbitrations.
-
Gregg Office Equipment Co. has a fleet of automobiles and trucks for use by salespersons and for delivery of office supplies and equipment. Bridger Auto Sales Co. has automobiles and trucks for sale....
-
How should (a) fixed assets and (b) intangible assets be reported in the balance sheet?
-
The annual labor cost of corrective maintenance is expressed by which one of the following key indices? Question 9 options: Interest rate per period Single amount Corrective maintenance labor cost...
-
Is the modified 5-question approach to ethical decision making superior to the modified moral standards or modified Past in approach?
-
Interpret favorable variance (Learning Objective 5) Exhibit 10-20 shows that the Mexican sauces product line had a favorable marketing expense variance. Does this favorable variance necessarily mean...
-
Identify responsibility centers (Learning Objective 5) Fill in the blanks with the phrase that best completes the sentence. A cost center A responsibility center Lower An investment center A profit...
-
Prepare summary performance report (Learning Objective 1)} Hanna White owns a chain of travel goods stores. Last year, her sales staff sold 10,000 suitcases at an average sales price of \(\$ 150\)....
Study smarter with the SolutionInn App