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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 18,000.00 bags b. Calculate the profit or loss (EBIT) on 10,000 bags and on 30,000 bags. Bags Profit/Loss Amount 10,000 Loss $ (40,000) 30,000 Profit $ 75.000 4 c. What is the degree of operating leverage at 23,000 bags and at 30,000 bags? (Round your answers to 2 decimal places.) Bags Degree of Operating 23,000 30,000 Leverage 5.50 2.20 d. If Healthy Foods has an annual interest expense of $9.000, calculate the degree of financial leverage at both 23.000 and 30,000 bags (Round your answers to 2 decimal places.) Bags Degree of Financial 23.000 30,000 Leverage 1.82 1.14 e. What is the degree of combined leverage at both 23,000 and 30,000 bage? (Round your enswers to 2 decimal places.) Degree of Combined Bags 23.000 30.000 Leverage 10.01 2.51
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