Answer:
b. 5.75
Explanation:
Times Interest earned ratio is the measure of ability of a company to pay the interest on its debts. It is the ratio of earning before interest and tax and interest expense as below.
Times Interest Earned Ratio = Earning before interest and tax / Interest Expense
Times Interest Earned Ratio = $86,250 / $15,000
Times Interest Earned Ratio = 5.75 times
Answer:
$37,760
Explanation:
The income for the current operation, without further processing, is given by:

If the product is further processed at a cost of $11,200, the company would sell 11,200 units at $31,80 each and 5,200 at $19.20 each, for an income of:

Therefore, the incremental net income of processing further would be:

The incremental net income would be $37,760.
Answer:
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A couple of years: Is usually when a budget is usually constructed.