Florida Citrus Farm produces premium citrus fruits for distribution across the southeastern United States during the winter season. The farm operates with a core team of 12 full-time employees and additional seasonal workers who harvest and pack the citrus fruits. The fruits are sold in crates, each containing 80 individually packed citrus assortments. Every package carries the distinctive Florida Citrus Farm logo with the tagline: "Taste the sunshine in every bite!" The selling price is $95 per crate, variable costs are $78 per crate, and fixed costs amount to $290,000 per year. In the year 2014, Florida Citrus Farm sold 48,000 crates. Determine the company's 2014 operating leverage.
Florida Citrus Farm produces premium citrus fruits for distribution across the southeastern United States during the winter season. The farm operates with a core team of 12 full-time employees and additional seasonal workers who harvest and pack the citrus fruits. The fruits are sold in crates, each containing 80 individually packed citrus assortments. Every package carries the distinctive Florida Citrus Farm logo with the tagline: "Taste the sunshine in every bite!" The selling price is $95 per crate, variable costs are $78 per crate, and fixed costs amount to $290,000 per year. In the year 2014, Florida Citrus Farm sold 48,000 crates. Determine the company's 2014 operating leverage.
Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter5: Buying The Necessities
Section: Chapter Questions
Problem 20AA
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Transcribed Image Text:Florida Citrus Farm produces premium citrus fruits for
distribution across the southeastern United States during the
winter season. The farm operates with a core team of 12 full-time
employees and additional seasonal workers who harvest and
pack the citrus fruits. The fruits are sold in crates, each
containing 80 individually packed citrus assortments. Every
package carries the distinctive Florida Citrus Farm logo with the
tagline: "Taste the sunshine in every bite!" The selling price is $95
per crate, variable costs are $78 per crate, and fixed costs
amount to $290,000 per year. In the year 2014, Florida Citrus
Farm sold 48,000 crates.
Determine the company's 2014 operating leverage.
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