Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Return to question Healthy Foods Inc. sells 50-pound bags of grapes to the military for $10 a bag. The fixed costs of this operation are

image text in transcribedimage text in transcribedimage text in transcribed

Return to question Healthy Foods Inc. 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. 10 points a. What is the break-even point in bags? (Round your answer to 2 decimal places.) Answer is complete and correct. 18,000.00 bags Break-even point b. Calculate the profit or loss (EBIT) on 10,000 bags and on 30,000 bags. Answer is complete but not entirely correct. Bags 10,000 30,000 Profit/Loss Loss Profit $ O$ Amount 40,000 80,000 c. What is the degree of operating leverage at 23,000 bags and at 30,000 bags? (Round your answers to 2 decimal places.) Bags Peg Degree of Operating Leverage 23,000 30,000 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. (Round your answers to 2 decimal places.) Bags Degree of Financial Leverage 23,000 30,000 e. What is the degree of combined leverage at both 23,000 and 30,000 bags? (Round your answers to 2 decimal places.) Bags Degree of Combined Leverage 23,000 30,000

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_2

Step: 3

blur-text-image_3

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

Fraud Auditing And Forensic Accounting

Authors: Tommie W. Singleton, Aaron J. Singleton, G. Jack Bologna, Robert J. Lindquist

3rd Edition

0471785911, 978-0471785910

More Books

Students also viewed these Accounting questions

Question

ase Study : Cybersecurity 1 0 - K Project

Answered: 1 week ago

Question

recognise typical interviewer errors and explain how to avoid them

Answered: 1 week ago

Question

identify and evaluate a range of recruitment and selection methods

Answered: 1 week ago

Question

understand the role of competencies and a competency framework

Answered: 1 week ago