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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 $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.
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
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