Answer:
6.21%
Explanation:
The computation of the times interest earned ratio is given below:
As we know that
Times interest earned ratio = EBIT ÷ Interest
Now for determining this, following calculations must be done:
The interest is
= $960,000 × 8%
= $76,800
Net profit
= Annual sales × net profit margin
= $6,000,000 × 0.05
= $300,000
Now the pre tax income is
= net income ÷ ( 1 - tax rate)
= $300,000 ÷ (1 - 0.25)
= $400,000
Now the EBIT is
= Pre tax income + interest expense
= $400,000 + $76,800
= $476,800
So, the TIE ratio is
= $476,800 ÷ $76,800
= 6.21%
Answer:
<h3>B. provide financial services to customers at no cost.</h3>
Explanation:
i hope it helps :)
Answer:
a. 32 refrigerators
b. 29 refrigerators
Explanation:
a. The computation of the economic order quantity is shown below:
= 32 refrigerators
The carrying cost is come from
= $500 × 20%
= $100
b. And, the reorder point is
= Annual demand ÷ total number of days in a year × lead time + service level × Standard deviation during lead time
= 500 ÷ 365 days × 7 days + 1.90 × 10
= 29 refrigerators
To predict the total costs for 3,000 birdcages:
Use the average cost per unit of $18.00 and multiply it by 3,000.
($18)(3,000)= $54,000
$54,000 is the predicted total costs of 3,000 birdcages.
Answer:
Other things equal, this would lead to:
an increase in interest rates of home repair loans as the demand for those loans increased.
Explanation:
With an increase in the demand for house repair loans, as a result of the devastation wrought by the hurricane, the rate of interest on loans normally increases with demand. The concept of scarcity of loanable funds (or limited resources) is the root cause of this increase in house loan rate. The reverse becomes the case when there is a decrease in demand.
