The following data were taken from recent annual reports of Caliber Company, which operates a low-fare airline service to more than 50 cities in the United States: Current Year Preceding Year Interest expense $75,000 $81,000 Income before income tax 322,500 218,700 a. Determine the times interest earned ratio for the current and preceding years. Round to one decimal place. Current year Preceding year b. Although Caliber Company had enough earnings to pay interest in the preceding year, the
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Business, 23.06.2019 02:40, laura1649
P8-4b dropping unfavorable division based on the following analysis of last year's operations of groves, inc., a financial vice president of the company believes that the firm's total net income could be increased by $160,000 if its design division were discontinued. (amounts are given in the thousands of dollars.) required provide answers for each of the following independent situations: a. assuming that total fixed costs and expenses would not be affected by discontinuing the design division, prepare an analysis showing why you agree or disagree with the vice president. b. assume that the discontinuance of the design division will enable the company to avoid 30% of the fixed portion of cost of services and 40% of the fixed operating expenses allocated to the design division. calculate the resulting effect on net income. c. assume that in addition to the cost avoidance in requirement (b), the capacity released by discontinuance of the design division can be used to provide 6,000 new services that would have a variable cost per service of $60 and would require additional fixed costs totaling $68,000. at what unit price must the new service be sold if groves is to increase its total net income by $180,000?
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Business, 23.06.2019 03:20, chynahgibsonwinfrey
Name successful entrepreneurs from your area whose business is related to cookery
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The following data were taken from recent annual reports of Caliber Company, which operates a low-fa...
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