The break-even point in bags Fresh Harvest Co. sells 40-poundbags of oranges to retailers for $12per bag. The fixed costs of thisoperation are $120,000, while thevariable cost per pound of orangesis $0.15.What is the break-even point inbags?

To find the break-even point in bags, we need to calculate the contribution margin per bag and then…

Answered: Fresh Harvest Co. sells 40-pound bags…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter7: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 62P

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Fresh Harvest Co. sells 40-pound bags of oranges to retailers for $12 per bag. The fixed costs of this operation are $120,000, while the variable cost per pound of oranges is $0.15. What is the break-even point in bags?