What is break-even point in bags

Assignment Help Financial Management

Reference no: EM131841169

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 grapes are $.10 per pound.

a. What is the break-even point in bags?

Break-Even Point _____ bags

b. Calculate the profit or loss (EBIT) on 12,000 bags and on 25,000 bags.

12,000: Profit/Loss _____Amount

25,000: Profit/Loss ______ Amount

c. What is the degree of operating leverage at 20,000 bags and at 25,000 bags? (Round your answers to 2 decimal places.)

20,000 _____

25,000_______

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. (Round your answers to 2 decimal places.)

20,000_____

25,000_____

e. What is the degree of combined leverage at both 20,000 and 25,000 bags? (Round your answers to 2 decimal places.)

20,000____

25,000_____

Reference no: EM131841169

Questions Cloud

Write educational autobiography about yourself : There's an Educational Autobiography about yourself only one page and write about why you have chosen finance as a major

Can you use information in chapter to complete a break even : In order to produce this new pump, the project manager said that the company would have to buy a mold that could stamp out a key component.

Separation from the roman catholic church : How did Henry VIII profit from his separation from the Roman Catholic Church?

What steps did project organization take for risk factors : Using the keyword phrase "cases on project risk management," search the Internet to identify and report on a recent example of a project facing significant.

What is break-even point in bags : Calculate the profit or loss (EBIT) on 12,000 bags and on 25,000 bags. What is the break-even point in bags?

Religious roots muhammad used to craft islam : What are the religious roots Muhammad used to craft Islam? How did Muhammad obtain religious and political success in uniting the factional Arab tribes?

How well the project is meeting scope and cost goals : Earned value management (EVM) is vital for ensuring project performance and helps measure the performance and how well the project is meeting scope.

What does environment suggest about the competition levels : Describe an environment in which it would be common to bid for contracts with low profit margins. What does this environment suggest about the competition.

How often the recursive version of fib calls itself : Find out how often the recursive version of fib calls itself. Keep a static variable fib Count and increment it once in every call to fib.

User Account

All Pages