Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Healthy Foods Inc. sells 60-pound bags of grapes to the military for $15 a bag. The fixed costs of this operation are $70,000, 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 $70,000, while the variable costs of grapes are $0.15 per pound.image text in transcribedimage text in transcribed

c. What is the degree of operating leverage at 18,000 bags and at 30,000 bags? (Round your answers to 2 decimal places.) d. If Healthy Foods has an annual interest expense of $10,000, calculate the degree of financial leverage at both 18,000 and 30,000 bags. (Round your answers to 2 decimal places.) e. What is the degree of combined leverage at both 18,000 and 30,000 bags? (Round your answers to 2 decimal places.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Day Trading Cardinal Rules For Passive Income

Authors: Brian Stclair

1st Edition

1539480313, 978-1539480310

More Books

Students also viewed these Finance questions