Assume a companys income statefor year 9 is as follows: Year 9
Income Statement Data in 000s
Total Revenues $650,000
Cost of Goods Sold 380,000
Delivery Costs 45,000
Marketing Costs 53,000
Administrative Expenses 11,000
Operating Profit (Loss) 161,000
Other Income (Expense) 2,600
Interest Income (Expense) 10,800
Pre-tax Profit (Loss) 147,600
Income Taxes 44,280
Net Profit (Loss) $103,320
Based on the above income statement data the companys interestcoverate ratio is:.
a. 14.91 and 20.2%.
b. 13.67 and 15.9%.
c. 16.71 and 23.3%.
d. 17.22 and 24.6%.
e. 19.29 and 21.4%.

Carlton industries is considering a new project that they plan to price at $74.00 per unit. the variable costs are estimated at $39.22 per unit and total fixed costs are estimated at $12,085. the initial investment required is $8,000 and the project has an estimated life of 4 years. the firm requires a return of 8 percent. ignore the effect of taxes. what is the degree of operating leverage at the financial break-even level of output?

Amanufacturer has paid an engineering firm $200,000 to design a new plant, and it will cost another $2 million to build the plant. in the meantime, however, the manufacturer has learned of a foreign company that offers to build an equivalent plant for $2,100,000. what should the manufacturer do?

Xinhong company is considering replacing one of its manufacturing machines. the machine has a book value of $39,000 and a remaining useful life of 5 years, at which time its salvage value will be zero. it has a current market value of $49,000. variable manufacturing costs are $33,300 per year for this machine. information on two alternative replacement machines follows. alternative a alternative b cost $ 115,000 $ 117,000 variable manufacturing costs per year 22,900 10,100 1. calculate the total change in net income if alternative a and b is adopted. 2. should xinhong keep or replace its manufacturing machine