Coats Corp

question 20

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 9.5%,its net income and EPS would increase 17.5%.What is the company's interest expense?

• A) $193,143
• B) $176,429
• C) $185,714
• D) $202,429
• E) $163,429

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Definitions:

Peristalsis

A series of wave-like muscle contractions that move food through the digestive tract from the esophagus to the colon.

Smooth Muscle

An involuntary, non-striated muscle found within the walls of organs and structures such as the intestines, ureters, and blood vessels, responsible for regulating internal movements.

Voluntary Control

The ability to consciously direct or influence bodily movements or physiological functions.

Flexion

A bending movement of the two elements of a jointed body part.