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Brilliant_brown [7]
3 years ago
5

A company had interest expense of $7,800, income before interest expense and income taxes of $19,200, and net income of $9,600.

The company's times interest earned ratio equals:
Business
1 answer:
mina [271]3 years ago
3 0

Answer:

2.5 times

Explanation:

The company's times interest ratio is computed as;

= Income before interest expense and income taxes / Interest expenses

Given that;

Income before interest expense and income taxes = $19,200

Interest expenses = $7,800

Then,

Company's interest times ratio = $19,200 / $7,800

Company's interest times ratio = 2.5 times

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Sillytime Park competes with Splash World by providing a variety of rides. Sillytime sells tickets at $ 60 per person as aâ one-
horsena [70]

Answer:

BEP 378,000

Explanation:

\frac{Fixed\:Cost}{Contribution \:Margin \:Ratio} = Break\: Even\: Point_{dollars}

\frac{Contribution \: Margin}{Sales \: Revenue} = Contribution \: Margin \: Ratio

Sales \: Revenue - Variable \: Cost = Contribution \: Margin

60 - 24 = 36 contribution margin

every units contribution $36 dollars

36 / 60 = 0.6 CM ratio

each dollar of sale generate 60 cents of contribution

226,800 fixed cost / 0.6 CMR = 378,000 BEP  in dollars

3 0
3 years ago
Why is the feedback loop important? Multiple Choice It looks at what is working and what could be different to maximize efficien
nydimaria [60]

Answer:

The answer is: It monitors progress so that corrective action can take place.

Explanation:

A positive feedback loop takes place when the company pays attention and listens to its employees' complaints or problems. Then it uses that feedback to improve workplace satisfaction and/or structural problems within the organization.

The goal is to increase workplace satisfaction, and as a result increase the employees' efficiency, increasing the organization's profits.

5 0
3 years ago
Assume that Thomas can afford to buy as many candy bars and ice cream cones as he wants. He would continue to consume both candy
deff fn [24]

Answer:

Marginal utility of each becomes negative

Explanation:

Utility is defined as the level of satisfaction that a person gets from consuming a product.

The person keeps on consuming the item until the level of marginal utility for the product becomes less than zero.

That is there is no satisfaction anymore in consuming the product.

In the given instance Thomas will continue to consume both candy bars and ice cream until the level of satisfaction (marginal utility) is now less than zero or negative

3 0
3 years ago
Theresa​ Corporation, which manufactures​ baskets, is developing direct labor standards. The basic direct labor rate is​ $21.00
wel

Answer:

Standard rate per direct labor hour is $27.1

Explanation:

Standard rate per direct labor hour includes the hourly pay rate, Payroll taxes and fringe benefits. For Theresa Corporation,

We have given that

Basic direct labor rate is $21.00 per hour

Payroll Taxes is 10% of basic direct labor rate i.e. 10% of $21.00 = $2.10 per hour

Fringe Benefits is $4.00 per hour.

So Standard rate per direct labor hour = $21.00 + $2.10 + $4.00 = $27.1

4 0
3 years ago
The controller of Fortnight Co. has requested a quick estimate of the manufacturing supplies needed for the Cleveland Plant for
zmey [24]

Answer:

$778460

Explanation:

Using the highlow method, we calculate the variable cost per unit,

  • VC / unit = 855460 - 651960 / 730000 - 545000  = $1.1per unit
  • The total fixed cost will be = 855460 - (1.1 * 730000) = $52460

The cost estimating equation will be,

  • Total cost at x number of unit = 1.1x + 52460

The cost of manufacturing supplies for the month of July will be,

  • Total cost (July) = 1.1(660000) + 52460   = $778460
6 0
3 years ago
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