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:

Altruistic Punishment

A behavior in which individuals punish others for violating social norms, even at a cost to themselves, to encourage cooperation within a group.

Natural Selection

The process by which organisms better adapted to their environment tend to survive and produce more offspring, driving evolutionary change.

Cultural Society

A community of people who share common cultural traditions, values, and practices.

Collective Unconscious

A term coined by Carl Jung to describe the part of the unconscious mind that is derived from ancestral memory and experience and is common to all humankind.