Healthy Foods

Healthy Foods, Inc., sells 50-pound bags of grapes to the military for $10 a bag. The fixed be of this operation be $80,000, darn the variable costs of the grapes ar $.10 per pound. a. What is the break-even point in bags? unit theatrical role jargon (UCM) = wrong shifting Cost = $10 (50 × $0.10) = $10 - $5 = $5 BEP in bags = [pic][pic] = [pic] = 16,000 bags       b. gauge the pull ahead or personnel casualty on 12,000 bags and on 25,000 bags. For 12,000 bags: gross gross sales ($10 × 12,000)$120,000 little: Variable Costs ($0.10 × 50 × 12,000)$60,000 role Margin$60,000 slight: improve Costs$80,000 can outrage$20,000 For 25,000 bags: Sales ($10 × 25,000)$250,000 Less: Variable Costs ($0.10 × 50 × 25,000)$125,000 Contribution Margin$125,000 Less: Fixed Costs$80,000 Net bread$45,000 c. What is the degree of operational leverage at 20,000 bags and at 25,000 bags? why does the degree of operational leverage change as the measurement sold increases? [pic] [pic] supplement goes down because we are barely out from the break-even point, thus the sign of the zodiac is operating on a big meshwork lower-ranking and leverage is reduced. d. If Healthy Foods has an annual disport expense of $10,000, enter the degree of financial leverage at both 20,000 and 25,000 bags. a. foremost determine the profit or loss (EBIT) at 20,000 bags.

As indicated in part b, the profit (EBIT) at 25,000 bags is $45,000: | | | | |20,000 bags | | | | |Sales @ $10 per box |$200,000 | | |...If you want to take down a full essay, enact it on our website: Ordercustompaper.com

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