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 Operating Leverage Bags 23000 25 000 d. If Healthy Foods has an annual interest expense of $7.000. calculate the degree of financial leverage at both 23000 and 25.000 bags. (Round your answers to 2 decimel pleces.) Degree of Financial Leverage Bags 23,000 25,000 e. What is the degree of combined leverage at both 23,000 and 25.000 bags? (Round your answers to 2 decimal pleces) Degree of Combined Leverage Bags 23,000 HE VA

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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, while
the variable costs of grapes are $0.25 per pound.
Transcribed Image Text: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, while the 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 Operating
Leverage
Bags
23.000
25 000
d. If Healthy Foods has an annual interest expense of $7,000. calculate the degree of financial leverage at both 23.000 and 25.000
bags. (Round your answers to 2 decimel pleces.)
Degree of Financial
Leverage
Bags
23,000
25,000
e. What is the degree of combined leverage at both 23,000 and 25.000 bags? (Round your answers to 2 decimal pleces)
Degree of Combined
Leverage
Bags
23,000
Transcribed Image Text: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 Operating Leverage Bags 23.000 25 000 d. If Healthy Foods has an annual interest expense of $7,000. calculate the degree of financial leverage at both 23.000 and 25.000 bags. (Round your answers to 2 decimel pleces.) Degree of Financial Leverage Bags 23,000 25,000 e. What is the degree of combined leverage at both 23,000 and 25.000 bags? (Round your answers to 2 decimal pleces) Degree of Combined Leverage Bags 23,000
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