Answer:
what kind of a question is this. im kinda confused like whaa
Explanation:
Answer:
The correct option is D: $8.60
Explanation:
Average fixed cost of Pretty Flowers = $5.40
Average variable costs of Pretty Flowers = $3.20
We are asked to calculate the Average total cost of Pretty Flowers at this current level
Hence:
Average total cost Pretty Flowers = Average fixed cost of Pretty Flowers + Average variable costs of Pretty Flowers
If we substitute the value of these variables in the equation, we get:
Average total cost Pretty Flowers = $5.40 + $3.20 = $8.60
Answer:
8.14 times
Explanation:
The computation of the Time interest earned ratio is shown below:
As we know that
Times interest earned ratio = (Earnings before interest and taxes) ÷ (Interest expense)
where,
Earnings before interest and taxes = Income before income tax for the year + Interest expense
But before tha, we need to do the following calculations
The interest amount is
= $350,000 × 0.08
= $28,000
The net profit is
= $1,750,000 × 8%
= $140,000
The EBIT is
= Profit before tax + interest expense
= $140,000 ÷ (1 - 0.30) + $28,000
= $200,000 + $28,000
= $228,000
And, the interest expense is $28,000
So, the TIE ratio is
= $228,000 ÷ $28,000
= 8.14 times
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