Coats Corp. generates $13,000,000 in sales. Its variable costs equal 85.50% of sales and its fixed...

 

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Coats Corp. generates $13,000,000 in sales. Its variable costs equal 85.50% of sales and its fixed costs are $500,000. Therefore, the company's operating income (EBIT) equals $1,385,000. The company estimates that if its sales were to increase 6.50%, its net income and EPS would increase 15.50%. What is the company's interest expense? Do not round intermediate calculations. Oa. $523,373 O b. $804,194 O c. $665,660 O d. $1,417,692 O e. $594,516 Coats Corp. generates $13,000,000 in sales. Its variable costs equal 85.50% of sales and its fixed costs are $500,000. Therefore, the company's operating income (EBIT) equals $1,385,000. The company estimates that if its sales were to increase 6.50%, its net income and EPS would increase 15.50%. What is the company's interest expense? Do not round intermediate calculations. Oa. $523,373 O b. $804,194 O c. $665,660 O d. $1,417,692 O e. $594,516

Answer rating: 100% (QA)

interest 594516 EXPLANATION Degree of combined leverage change in EPS change in sa... View the full answer