Coats Corp

question 16

Multiple Choice

Coats Corp.generates $10,000,000 in sales.Its variable costs equal 85% 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 10%,its net income and EPS would increase 17.5%.What is the company's interest expense?

• A)$122,482
• B)$128,929
• C)$135,714
• D)$142,857
• E)$150,000

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Definitions:

Otoscope

A medical device used for the visual examination of the ear canal and eardrum.

Tympanic Membrane

The thin, semitransparent membrane separating the external ear canal from the middle ear, commonly referred to as the eardrum.

Internal Ear

A complex structure within the ear responsible for hearing and balance, consisting of the cochlea, vestibule, and semicircular canals.

Percussion Techniques

Methods used in medical examination involving tapping on the body surface to diagnose the condition of organs or spaces within.