Healthy Foods Inc sells 50 pound bags of grapes to the military for $10 a bag The fixed costs of this operation are $95,000, while the variable costs of grapes are $ 10 per pound Calculate the profit or loss (EBIT) on 15,000 bags and on 35,000 bags Bags Profit Loss Amount 15,000 35,000 What is the degree of operating leverage at 23,000 bags and at 35,000 bags (Round your answers to 2 decimal places ) Bags Degree of Operating Leverage 23,000 35,000 If Healthy Foods has an annual interest expense of $12,000, calculate the degree of financial leverage at both 23,000 and 35,000 bags (Round your answers to 2 decimal places ) Bags Degree of Financial Leverage 23,000 35,000 What is the degree of combined leverage at both 23,000 and 35,000 bags (Round your answers to 2 decimal places ) Bags Degree of Financial Leverage 23,000 35,000

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Oct 19, 2024

Healthy Foods Inc. sells 50-pound bags of grapes to the military for $10 a bag. The fixed costs of this operation are $95,000, 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 $95,000, while the variable costs of grapes are $.10 per pound.

Calculate the profit or loss (EBIT) on 15,000 bags and on 35,000 bags.

Bags	Profit/Loss	Amount
15,000
35,000

What is the degree of operating leverage at 23,000 bags and at 35,000 bags? (Round your answers to 2 decimal places.)

Bags	Degree of Operating Leverage
23,000
35,000

If Healthy Foods has an annual interest expense of $12,000, calculate the degree of financial leverage at both 23,000 and 35,000 bags. (Round your answers to 2 decimal places.)