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Healthy Foods Incorporated sells 50-pound bags of grapes to the military for $20 a bag. The fixed costs of this operation are $110,000, while the
Healthy Foods Incorporated sells 50-pound bags of grapes to the military for $20 a bag. The fixed costs of this operation are $110,000, while the variable costs of grapes are $0.20 per pound.
c. What is the degree of operating leverage at 18,000 bags and at 20,000 bags? Note: Round your answers to 2 decimal places. d. If Healthy Foods has an annual interest expense of $13,000, calculate the degree of financial leverage at both 18,000 and 20,000 bags. Note: Round your answers to 2 decimal places. e. What is the degree of combined leverage at both 18,000 and 20,000 bags? Note: Round your answers to 2 decimal places Step by Step Solution
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