Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 International Data Systems' information on revenue and costs is relevant only up to a sales volume of 113,000 units. After 113,000 units, the market becomes saturated and the price per unit falls from $12.00 to $7.80. Also, there are cost overruns at a production volume of over 113,000 units, and variable cost per unit goes up from $6.00 to $6.25. Fixed costs remain the same at $63,000. a. Compute operating income at 113,000 units. Operating income b. Compute operating income at 213,000 units. Operating income
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started