What is the degree of operating leverage at 20,000 bags and at 25,000 bags? d
Healthy Foods, Inc., sells 50- pound bags of grapes to the military for
$10 a bag. The fixed costs of this operation are $80,000, while the
variable costs of the grapes are $.10 per pound. a. what is the
break-even point in bags b. calculate the profit of loss on 12,000 bags
and on 25,000 bags. c. what is the degree of operating leverage change
as the quantity sold increases? d. If healthy foods has an annual
interest expense of $10,000, calculate the degree of financial leverage
at both 20,000 and 25,000 bags e. what is the degree of combined
leverage at both sales levels.
a. what is the break-even point in bags
b. calculate the profit of loss on 12,000 bags and on 25,000 bags.
c. What is the degree of operating leverage at 20,000 bags and at 25,000
bags?
d. If healthy foods has an annual interest expense of $10,000, calculate
the degree of financial leverage at both 20,000 and 25,000 bags
