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Healthy Foods Inc. sells 60-pound bags of grapes to the military for $15 a bag. The fixed costs of this operation are $90,000, while the
Healthy Foods Inc. sells 60-pound bags of grapes to the military for $15 a bag. The fixed costs of this operation are $90,000, while the varlable costs of grapes are $0.15 per pound. a. What is the break-even point in bags? (Round your answer to 2 decimal places.) bags Break-even point b. Calculate the profit or loss (EBIT) on 14.000 bags and on 35,000 bags Bags Profit/Loss Amount 14,000 35,000 c. What is the degree of operating leverage at 21,000 bags and at 35,000 bags? (Round your answers to 2 decimal places.) Degree of Operating Leverage Bags 21,000 35,000 d. If Healthy Foods has an annual interest expense of $17,000, calculate the degree of financial leverage at both 21,000 and 35,000 bags. (Round your answers to 2 decimal places.) Degree of Financial Leverage Bags 21,000 35,000 e. What is the degree of combined leverage at both 21,000 and 35,000 bags? (Round your answers to 2 decimal places.) Degree of Combined Leverage Bags 21,000 35,000
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