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Mo & Chris's Delicious Burgers, Inc., sells food to Military Cafeterias for $29 a box. The fixed costs of this operation are $132,000, while the

Mo & Chris's Delicious Burgers, Inc., sells food to Military Cafeterias for $29 a box. The fixed costs of this operation are $132,000, while the variable cost per box is $17.

(a)

What is the break-even point in boxes?

Break-even point boxes

(b)

Calculate the profit or loss on 14,000 boxes and on 29,500 boxes. (Input all amounts as positive values. Omit the "$" sign in your response.)

Boxes Profit/Loss Amount
14,000 (Click to select)LossProfit $
29,500 (Click to select)LossProfit $

(c)

What is the degree of operating leverage at 13,000 boxes and at 29,500 boxes? (Enter only numeric value rounded to 2 decimal places.)

Boxes Degree of operating leverage
13,000
29,500

(d)

If the firm has an annual interest expense of $10,700, calculate the degree of financial leverage at both 13,000 and 29,500 boxes.(Enter only numeric value rounded to 2 decimal places.)

Boxes Degree of financial leverage
13,000
29,500

(e)

What is the degree of combined leverage at both sales levels? (Enter only numeric value rounded to 2 decimal places.)

Boxes Degree of combined leverage
13,000
29,500

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