Q 10

Coats Corp.generates $10,000,000 in sales.Its variable costs equal 85.00% of sales and its fixed costs are $500,000.Therefore,the company's operating income (EBIT)equals $1,000,000.The company estimates that if its sales were to increase 9.50%,its net income and EPS would increase 17.50%.What is the company's interest expense? Do not round intermediate calculations. A) $222,857 B) $148,571 C) $185,714 D) $224,714 E) $143,000

Multiple Choice