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Healthy Foods Inc. sells 50-pound bags of grapes to the military for $20 a bag. The fixed costs of this operation are $105.000. while the
Healthy Foods Inc. sells 50-pound bags of grapes to the military for $20 a bag. The fixed costs of this operation are $105.000. while the variable costs of grapes are $0.25 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 15,000 bags and on 25.000 bags. Profit/Loss Amount Bags 15,000 25,000 c. What is the degree of operating leverage at 23,000 bags and at 25.000 bags? (Round your answers to 2 decimal places.) Bags Degree of Operating Leverage 23,000 25,000 d. If Healthy Foods has an annual interest expense of $7.000. calculate the degree of financial leverage at both 23,000 and 25.000 bags. (Round your answers to 2 decimal places.) Bags Degree of Financial Leverage 23.000 25,000 c. What is the degree of combined leverage at both 23.000 and 25,000 bags? (Round your answers to 2 decimal places.) Bags Degree of Combined Leverage 23,000 25,000
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