CVP ANALYSIS Costs and CVP (20 marks) Healthy Foods Company sells 50-Kilogram bags of grapes to the military for $250 a bag. The fixed costs of this operation are $500,000, while the variable costs of grapes are $50.00 per bag. Required: (a) Calculate the contribution margin per unit and contribution margin ratio (b)What is the break-even point in bags and dollars? (4 marks) (4 marks) (c) What is the expected revenue and number of bags to earn the target net profit of $150,000? (4 Marks) (4 marks) 0 (d)Calculate the company's margin of safety in the number of bags and dollars, assuming that the company sells 4,000 bags. Comment on the results. (e) Healthy Foods has a new plan to cut fixed costs to $400,000. However, more labour will now be required, which will increase variable costs per bag to $125. The sales price will remain at $250 a bag. Determine the break-point under the new plan and compare the profit at the 6,000 under the new and old plans. Comment on the results. (4 marks) Answer by typing in the box below or copying and pasting from word/Excel file or attaching word/Excel file. A B !!! III 1