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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 $100.000, 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 $100.000, 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 14,000 bags and on 29.000 bags. Profit/Loss Amount Bags 14.000 29.000 c. What is the degree of operating leverage at 22,000 bags and at 29,000 bags? (Round your answers to 2 decimal places.) Leverage Bags Degree of Operating 22.000 i 29,000 d. If Healthy Foods has an annual Interest expense of $8,000, calculate the degree of financial leverage at both 22,000 and 29.000 bags. (Round your answers to 2 decimal places.) Bare Bags Degree of Financial Leverage 22.000 29,0001 e. What is the degree of combined leverage at both 22.000 and 29,000 bags? (Round your answers to 2 decimal places.) Bags Degree of Combined Leverage 22.000 29.000
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