Please answer c,d,e Healthy Foods Inc. sells 50-pound bags of grapes to the military for $20 a bag. The fixed costs of this operation are $105,000, whilethe variable costs of grapes are $0.25 per pound. c. What is the degree of operating leverage at 23,000 bags and at 25,000 bags? (Round your answers to 2 decimal pleces)Degree of OperatingLeverageBags23.00025 000d. If Healthy Foods has an annual interest expense of $7,000. calculate the degree of financial leverage at both 23.000 and 25.000bags. (Round your answers to 2 decimel pleces.)Degree of FinancialLeverageBags23,00025,000e. What is the degree of combined leverage at both 23,000 and 25.000 bags? (Round your answers to 2 decimal pleces)Degree of CombinedLeverageBags23,000

Working 1. Variable cost = 50 x 0.25 per pound = 12.5 2. Sales Price = 20 3. Contribution margin per…

Answered: c. What is the degree of operating…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

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Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 5EA: Shelby Industries has a capacity to produce 45.000 oak shelves per year and is currently selling...

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United Snack Company sells 40-pound bags of peanuts to university dormitories for $48 a bag. The fixed costs of this operation are $509,600, while the variable costs of peanuts are $0.29 per pound. a. What is the break-even point in bags? Break-even point bags
Swiss Industries imports raw nuts from farmers at a cost of $8.40 per pound. Swiss can resell the nuts without any further processing for $9.00 a pound or it can use the nuts to make energy bars. Each box of energy bars contains eight-tenths (0.80) of a pound of nuts and can be sold for $13.20. Making and selling a box of energy bars requires additional variable costs of $3.30 per box. The traceable fixed costs associated with making energy bars includes the production line supervisor's salary of $5,805 per month, the product line sales manager's salary of $5,670 per month, and the depreciation expense on the specialized production equipment of $2,025 per month. The equipment has no resale value. Swiss is thinking about discontinuing production of energy bars. How many boxes of energy bars does Swiss need to sell each month to break-even on the production and sale of energy bars as opposed to merely reselling the raw nuts without any further processing? Round to the nearest whole…
United Snack Company sells 40-pound bags of peanuts to university dormitories for $42 a bag. The fixed costs of this operation are $417,120, while the variable costs of peanuts are $0.26 per pound. a. What is the break-even point in bags? Break-even point b. Calculate the profit or loss (EBIT) on 12,000 bags and on 25,000 bags. Bags 12,000 Loss 25,000 Profit Profit/Loss Bags 20,000 25,000 bags c. What is the degree of operating leverage at 20,000 bags and at 25,000 bags? Note: Round your answers to 2 decimal places. Degree of Operating Leverage Amount
Carondelet Coffee has begun making and selling pastries. The fixed costs of making the pastry are $4,000, and the company estimates that the variable costs are $.75 per pastry. How many pastries does Carondelet have to sell to earn net income of $5,000 if it sells each pastry for $3 apiece?
The Mighty Music Company produces and sells a desktop speaker for $200. The company has the capacity to produce 60,000 speakers each period. At capacity, the costs assigned to each unit are as follows: Unit-level costs Product-level costs Facility-level costs The company has received a special order for 11,000 speakers. If this order is accepted, the company will have to spend $20,000 on additional costs. Assuming that no sales to regular customers will be lost if the order is accepted, at what selling price will the company be indifferent between accepting and rejecting the special order? Multiple Choice O O $96.82 $146.82 $104.32 $95 $25 $15 $107.32
Broomfield Corp. has 1,000 carton of oranges that cost $50 per carton in direct costs and $26.50 per carton in indirect costs and sold for $70 per carton. The oranges can be processed further into orange juice at an additional cost of $22.50 and sold at a price of $126. The incremental income (loss) from processing the oranges into orange juice would be: Multiple Choice ($100,500). $103,500. $92,500. $100,500. $93,500.
Walter Farms has already spent $11,200 to harvest vegetables. The vegetables can be sold as is for $201,600. Instead, the company could incur further processing costs of $107,520 and process the vegetables into salsa. The resulting salsa can be sold for $282,240. The incremental income to sell the vegetables ‘as is’ is
Homerun Corporation produces baseball bats for kids that it sells for $36 each. At capacity, the company can produce 50,000 bats a year. The costs of producing and selling 50,000 bats are as follows: (Click to view the costs.) Read the requirements. Requirement 1. Suppose Homerun is currently producing and selling 38,000 bats. At this level of production and sales, its fixed costs are the same as given in the preceding table. Cobb Corporation wants to place a one-time special order for 12,000 bats at $20 each. Homerun will incur no variable selling costs for this special order. Should Homerun accept this one-time special order? Show your calculations. Determine the effect on operating income if the order is accepted. (Enter decreases in operating income with parentheses or a minus sign.) Data Table Increase (decrease) in operating income if order is accepted Cost per Bat Total Costs Homerun should Cobb's special order because it operating income by $ Direct materials 11 $ 550,000…
rally synthesis inc. manufactures and sells 100 bottles per day. fixed costs are $22,000 and the variable costs for manufacturing 100 bottles are $30,000. Each bottle is sold for $1,200. how would the daily profit be affected if the daily volume of sales drop by 10%?
Shelby Industries has a capacity to produce 45.000 oak shelves per year and is currently selling 40,000 shelves for $32 each. Martin Hardwoods has approached Shelby about buying 1,200 shelves for a new project and is willing to pay $26 each. The shelves can be packaged in bulk; this saves Shelby $1.50 per shelf compared to the normal packaging cost. Shelves have a unit variable cost of $27 with fixed costs of $350,000. Because the shelves dont require packaging, the unit variable costs for the special order will drop from $27 per shelf to $25.50 per shelf. Shelby has enough idle capacity to accept the contract. What is the minimum price per shelf that Shelby should accept for this special order?
Evergreen Fertilizer Company produces fertilizer. The company's fixed monthly cost is $25,000, and its variable cost per pound of fertilizer is $0.15. Evergreen sells the fertilizer for $0.40 per pound. Graphically illustrate the break-even volume

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