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Healthy Foods Incorporated sells 60-pound bags of grapes to the military for $20 a bag. The fixed costs of this operation are $87,000, while
Healthy Foods Incorporated sells 60-pound bags of grapes to the military for $20 a bag. The fixed costs of this operation are $87,000, while the variable costs of grapes are $0.20 per pound. a. What is the break-even point in bags? Note: Round your answer to 2 decimal places. Break-even point Answer is complete and correct. 10,875.00 bags b. Calculate the profit or loss (EBIT) on 9,000 bags and on 28,000 bags. Answer is complete and correct. Bags 9,000 Profit/Loss Amount Loss $ 28,000 Profit $ (15,000) 137,000 c. What is the degree of operating leverage at 17,000 bags and at 28,000 bags? Note: Round your answers to 2 decimal places. < Prev 3 of 8 Next > c. What is the degree of operating leverage at 17,000 bags and at 28,000 bags? Note: Round your answers to 2 decimal places. Bags 17,000 28,000 Degree of Operating Leverage d. If Healthy Foods has an annual interest expense of $9,000, calculate the degree of financial leverage at both 17,000 and 28,000 bags. Note: Round your answers to 2 decimal places. Degree of Financial Bags 17,000 28,000 Leverage e. What is the degree of combined leverage at both 17,000 and 28,000 bags? Note: Round your answers to 2 decimal places. Bags 17,000 28,000 Degree of Combined Leverage < Prev 3 of 8
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