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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 $.15 per pound. a. What is the break-even point in bags? Break-even b. Calculate the profit or loss (EBIT) on 11,000 bags and on 32,000 bags. Profit/Los Bags 11,000 32,000 Amount c. What is the degree of operating leverage at 19,000 bags and at 32,000 bags? (Round your answers to 2 decimal places.) Degree of Bags Operating Levera 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.) Degree of Bags Financial Levera 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.) Degree of Bags Combined Lever 19,000 32,000
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