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revenue
/in Questions Uploads /by Hannah WanguiQuestion
1.Before Sarah quit her job as a carpenter, she was earning $35,000 per year. She rented a building for
$12,000 per year and opened a cabinet shop.
She spends $148,000 per year for labor, materials, utilities, and advertising.
◦How much revenue will the business have to earn in order to break even in terms of business profit?
◦How much revenue will the business have to earn in order to break even in economic terms?
◦Suppose that Sarah buys the building. Now how much will the business have to earn in order to break even in economic terms?
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Pepsi
/in Questions Uploads /by Hannah Wanguirate of interest
/in Questions Uploads /by Hannah WanguiQuestion
Lever Age pays an 9% rate of interest on $10.10 million of outstanding debt with face value $10.1 million. The
firm’s EBIT was $1.1 million.
a. What is its times interest earned? (Round your answer to 2 decimal places.)
b. If depreciation is $210,000, what is its cash coverage ratio? (Round your answer to 2 decimal places.)
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