A. Healthy Foods Inc. sells 50-pound bags of grapes to the military for $10 a bag. The fixed costs of this operation are $80,000, while the variable costs of grapes are $5 per bag. If the company sells 20,000 bags in August and 25,000 bags in September, compute the degree of operating leverage.

B.

Healthy Foods Inc. sells 50-pound bags of grapes to the military for $10 a bag. The fixed costs of this operation are $80,000, while the variable costs of grapes are $5 per bag.