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Healthy Foods Inc. sells 50-pound bags of grapes to the military for $25 a bag. The fixed costs of this operation are $130,000, while the
Healthy Foods Inc. sells 50-pound bags of grapes to the military for $25 a bag. The fixed costs of this operation are $130,000, while the variable costs of grapes are $0.20 per pound. a. What is the break-even point in bags? (Round your answer to 2 decimal places.) Break-even point bags b. Calculate the profit or loss (EBIT) on 12,000 bags and on 34,000 bags. Amount Bags Profit/Loss 12,000 Profit 34,000 This is a numeric cell, so please enter numbers only. c. What is the degree of operating leverage at 30,000 bags and at 34,000 bags? (Round your answers to 2 decimal places.) Bags Degree of Operating Leverage 30,000 34,000 d. If Healthy Foods has an annual interest expense of $11,000, calculate the degree of financial leverage at both 30,000 and 34,000 bags. (Round your answers to 2 decimal places.) Bags Degree of Financial Leverage 30,000 34,000 e. What is the degree of combined leverage at both 30,000 and 34,000 bags? (Round your answers to 2 decimal places.) Degree of Combined Bags Leverage 30,000 34,000
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