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Healthy Foods Inc. sells 50-pound bags of grapes to the military for $16 a bag. The fixed costs of this operation are $90,000, while the
Healthy Foods Inc. sells 50-pound bags of grapes to the military for $16 a bag. The fixed costs of this operation are $90,000, 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.) b. Calculate the profit or loss (EBIT) on 12,000 bags and on 34,000 bags. c. What is the degree of operating leverage at 20,000 bags and at 34,000 bags? (Round your answers to 2 decimal places.)
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