The time interest earned ratio of the company was found to be 7.4 times to the expenses.
EBIT = Net Income + Interest Expense + Income tax Expense
= 240,000 + 50,000 + 80,000
= 370,000
Times Interest Earned Ratio:
EBIT / Interest Expense
= 370,000 / 50,000
= 7.4 times
Times interest earned ratio is a good way to measure a company's financial performance because it shows a company's ability to pay interest charges on its debts the ratio is calculated by taking a company's net income before interest and taxes and dividing it by the company's interest expense.
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Answer:
The correct answer is budget slack.
Explanation:
Budget slack occurs in a company when one or more people with budgetary responsibility create a budget that overestimates expenses and / or underestimates projected income or income.
Intentional budget slack can occur because a manager feels under the weapon to "make their numbers", often in response to previous quarters where revenues fell below projections and, more importantly, did not meet expectations of the owners or shareholders.
Answer:
Correct option is (c)
Explanation:
In international market contract manufacturing is when one firm manufactures goods under another firm's label or brand. Under this type of manufacturing, a company seeks another company in a different country to manufacture goods for it. This is done as the it could be costly to manufacture goods in home country in terms of human resources and raw materials.
So, contract manufacturing, also called international outsourcing or international sub-contracting is a cost-effective way of manufacturing goods.
Even when there is no advertising, consumer taste can still change over time due to changes in A. age and education.
<h3>What leads to a change in consumer taste?</h3>
The age of a person can influence their consumer taste because people of different ages have different interests.
For instance, a child might like a certain type of video games such as low graphic and uncomplicated gameplay games while an adult would prefer high level video games that need to be played on consoles.
The education of a person can also influence their consumer taste.
For instance, an educated person might want less unhealthy food because they know the effects it has on the body while a less educated person might want that unhealthy food because they don't know that they are killing themselves slowly.
Options include:
- age and education
- the total number of consumers
- media influence
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The approximate tip for a bill of $81.79 would be $12.30 when the tip is 15% of the bill amount.
<h3>How to calculate tip amount?</h3>
Tip is the extra amount paid over a bill for the services provided by the staff. The tip when calculated as a percentage over the bill, the percentage rate is to be multiplied by the bill amount.
Given:
The amount of tip will be calculated by calculating 15% of the bill amount.
The approximate value of tip will be $12.30.
Therefore, option c is correct.
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