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 9.5%, its net income and EPS would increase 17.50%. What is the company's interest expense? Donotroundintermediatecalculations.
A. $193,143
B. $176,429
C. $185,714
D. $202,429
E. $163,429
Answer: C
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