Papers co. generates €10,000,000 in sales. Its variable costs equal 85.00% of sales and its fixed costs are €500,000. Therefore, the company's operating income (EBIT) equals €1,000,000. The company estimates that if its sales were to increase 9.5%, its net income would increase 17.50%.
Income tax rate is 35%.

What is the company's interest expense? 

Build the Income statement, do not round intermediate calculations and present them all.

Answer rating: 100% (QA)

1 For both the scenarios we assume the interest expense to be x Thus Net income in ... View the full answer