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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 variable costs of grapes are $0.15 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 11.000 bags and on 32,000 bags. Profit/Loss Amount Bags 11.0001 32.000 C. What is the degree of operating leverage at 19.000 bags and at 32,000 bags? (Round your answers to 2 decimal places.) Bags Degree of Operating Leverage 19.000 32.000 d. If Healthy Foods has an annual Interest expense of $14.000. calculate the degree of financial leverage at both 19,000 and 32.000 bags. (Round your answers to 2 decimal places.) Bags Degree of Financial Leverage 19.000 32.000 e. What is the degree of combined leverage at both 19.000 and 32,000 bags? (Round your answers to 2 decimal places.) Bags Degree of Combined Leverage 19,0001
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