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Healthy Foods Inc. sells 50-pound bags of grapes to the military for $10 a bag. The fixed costs of this operation are $92,000, while the
Healthy Foods Inc. sells 50-pound bags of grapes to the military for $10 a bag. The fixed costs of this operation are $92,000, while the variable costs of grapes are $0.10 per pound. a. What is the break-even point in bags? (Round your answer to 2 decimal places.) Answer is complete and correct. Break-even point 18.400.00 bags b. Calculate the profit or loss (EBIT) on 16,000 bags and on 34,000 bags. Bags 16,000 34.000 Answer is complete and correct. Profit/Loss Amount Loss s 12.000 Profit S 78,000 c. What is the degree of operating leverage at 26,000 bags and at 34,000 bags? (Round your answers to 2 decimal places.) Bags Answer is complete and corre rrect. Degree of Operating Leverage 3.42 26.000 34,000 2.18 d. If Healthy Foods has an annual Interest expense of $10,000, calculate the degree of financial leverage at both 26,000 and 34,000 bags. (Round your answers to 2 decimal places.) Answer is complete but not entirely correct. Degree of Bags Financial Leverage 26,000 1.36 34,000 2.79 e. What is the degree of combined leverage at both 26,000 and 34,000 bags? (Round your answers to 2 decimal places.) Answer is complete but not entirely correct. Degree of Bags Combined Leverage 26.000 4.65 34,000 6.08
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