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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 $90,000, 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 $90,000, 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.) Break-even point 9,091.00 bags b. Calculate the profit or loss (EBIT) on 14,000 bags and on 33,000 bags. Profit/Loss Amount Bags 14,000 33,000 c. What is the degree of operating leverage at 22,000 bags and at 33,000 bags? (Round your answers to 2 decimal places.) Bags Degree of Operating Leverage 22,000 33,000 d. If Healthy Foods has an annual interest expense of $9,000, calculate the degree of financial leverage at both 22,000 and 33,000 bags. (Round your answers to 2 decimal places.) Degree of Financial Leverage Bags 22,000 33,000
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