Chapter 4, Problem 4.26E

A promissory note has the following details: Principal: $5,000 . Term: 90 days . Interest: $150 Find the interest rate (Assume a 360- day year).

What is the amount of cash paid for interest in 2017?

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What is the operating income using absorption costing

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Richard Gear Co. manufactures mountain bike tires. The tires sell for $75. The variable cost per tire is $40, and monthly fixed costs are $360,000. If the company is currently selling 18,000 tires monthly, what is the degree of operating leverage?