Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Healthy Foods Incorporated sells 50-pound bags of grapes to the military for $10 a bag. The fixed costs of this operation are $90,000, while the

image text in transcribed Healthy Foods Incorporated sells 50-pound bags of grapes to the military for $10 a bag. The fixed costs of this operation are $90,000, while the variable costs of grapes are $0.10 per pound. a. What is the break-even point in bags? Note: Round your answer to 2 decimal places. b. Calculate the profit or loss (EBIT) on 10,000 bags and on 30,000 bags. c. What is the degree of operating leverage at 23,000 bags and at 30,000 bags? Note: Round your answers to 2 decimal places. Answer is complete but not entirely correct. d. If Healthy Foods has an annual interest expense of $9,000, calculate the degree of financial leverage at both 23,000 and 30,000 bags. Note: Round your answers to 2 decimal places. Answer is complete but not entirely correct. e. What is the degree of combined leverage at both 23,000 and 30,000 bags? Note: Round your answers to 2 decimal places. Answer is complete but not entirely correct

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

Step: 3

blur-text-image

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

Financial Terms Dictionary Investment Terminology Explained

Authors: Thomas Herold, Wesley Crowder

1st Edition

1521725764, 978-1521725764

More Books

Students also viewed these Finance questions

Question

Differentiate Personnel Management and Human Resource Management

Answered: 1 week ago

Question

Describe the functions of Human resource management

Answered: 1 week ago

Question

What are the objectives of Human resource planning ?

Answered: 1 week ago

Question

Explain the process of Human Resource Planning.

Answered: 1 week ago