I need answer of this question general accounting Healthy Foods Inc. sells 50-pound bags ofgrapes to the military for $10 a bag. The fixedcosts of this operation are $102,000, while thevariable costs of grapes are $0.10 per pound.What is the break-even point in bags?

Step 1: Define CVP AnalysisCost volume profit analysis is a study of different levels of cost and…

Answered: Healthy Foods Inc. sells 50-pound bags…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 11E

See similar textbooks

Similar questions

Healthy Foods Inc. sells 50-pound bags of grapes to the military for $10 a bag. The fixed costs of this operation are $92,000, while the variable costs of grapes are $0.10 per pound. a. What is the break-even point in bags? (Round your answer to 2 decimal places.) Break-even point bags b. Calculate the profit or loss (EBIT) on 16,000 bags and on 34,000 bags. Bags Profit/Loss Amount 16,000 34,000 c. What is the degree of operating leverage at 26,000 bags and at 34,000 bags? (Round your answers to 2 decimal places.) Bags Degree of Operating Leverage 26,000 34,000 d. If Healthy Foods has an annual interest expense of $10,000, calculate the degree of financial leverage at both 26,000 and 34,000 bags. (Round your answers to 2 decimal places.) Bags Degree of Financial Leverage 26,000 34,000 e. What is the degree of combined leverage at both 26,000 and 34,000 bags? (Round your answers to 2 decimal places.) Bags Degree of…
Healthy Foods Incorporated sells 60-pound bags of grapes to the military for $15 a bag. The fixed costs of this operation are $90,000, while the variable costs of grapes are $0.15 per pound. a. What is the break-even point in bags? Note: Round your answer to 2 decimal places. Break-even point b. Calculate the profit or loss (EBIT) on 11,000 bags and on 32,000 bags. Bags 11,000 32,000 Bags 19,000 32,000 c. What is the degree of operating erage at 19,000 bags and at 32,000 bags? Note: Round your answers to 2 decimal places. Bags 19,000 32,000 Profit/Loss d. If Healthy Foods has an annual interest expense of $14,000, calculate the degree of financial leverage at both 19,000 and 32,000 bags. Note: Round your answers to 2 decimal places. Bags Degree of Operating Leverage 19,000 32.000 15,000.00 bags Degree of Financial Leverage Amount e. What is the degree of combined leverage at both 19,000 and 32,000 bags? Note: Round your answers to 2 decimal places. Degree of Combined Leverage
Healthy Foods Incorporated sells 50-pound bags of grapes to the military for $10 a bag. The fixed costs of this operation are $80,000. while the variable costs of grapes are $0.10 per pound. a. What is the break-even point in bags? Note: Round your answer to 2 decimal places. Break-even point b. Calculate the profit or loss (EBIT) on 13,000 bags and on 35,000 bags. Bags 13,000 35,000 Bags 21,000 35,000 c. What is the degree of operating leverage at 21,000 bags and at 35,000 bags? Note: Round your answers to 2 decimal places. Profit/Loss Bags 21,000 35,000 bags Degree of Operating Leverage d. If Healthy Foods has an annual interest expense of $6,000, calculate the degree of financial leverage at both 21,000 and 35.000 bags. Note: Round your answers to 2 decimal places. Amount Degree of Financial Leverage
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
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?
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
Pimpton Plows sells its product for $50. Its variable cost per unit is $19.00. Fixed costs total $434,000.How many units does the company need to sell to breakeven?What are the total sales in dollars at the breakeven point?How many units does the company need to sell to earn a profit of $155,000?
College Pizza delivers pizzas to the dormitories and apartments near a major state university. The company’s annual fixed expenses are $40,000. The sales price of a pizza is $10, and it costs the company $5 to make and deliver each pizza. (In the following requirements, ignore income taxes.)Required:1. Using the contribution-margin approach, compute the company’s break-even point in units (pizzas).2. What is the contribution-margin ratio?3. Compute the break-even sales revenue. Use the contribution-margin ratio in your calculation.4. How many pizzas must the company sell to earn a target profit of $65,000? Use the equation method.
Crane, Inc., sells two types of water pitchers, plastic and glass. Plastic pitchers cost the company $30 and are sold for $40. Glass pitchers cost $26 and are sold for $47. All other costs are fixed at $280,800 per year. Current sales plans call for 14,000 plastic pitchers and 28,000 glass pitchers to be sold in the coming year. How many pitchers of each type must be sold to break even in the coming year? (Use contribution margin per unit to calculate breakeven units.)
Yaad Peanut is a company in Jamaica. They produce peanut butter. Each jar sells for $800. thecompany incurs a variable cost of $100 per jar of peanut butter and fixed cost of $2,000,000 perannum. In this period, they are able to produce 200,000 jars. Write a formula for the total revenue and the total cost incurred by Yaad Peanut Determine when Yaad Peanut can break even
The Chimes Clock Company sells a particular clock for $40. The variable costs are $23 per clock and the breakeven point is 230 clocks. The company expects to sell 280 clocks this year. If the company actually sells 430 clocks, what effect would the sale of additional 150 clocks have on operating income? Explain your answer. The sale of an additional 150 clocks would operating income by the amount of The total effect would amount to
Super Sales Company is the exclusive distributor for a high-quality knapsack. The product sells for $60 per unit and has a CM ratio of 40%. The company’s fixed expenses are $540,000 per year. The company plans to sell 26,000 knapsacks this year. Required: What are the variable expenses per unit? Use the equation method for the following: What is the break-even point in units and in sales dollars? What sales level in units and in sales dollars is required to earn an annual profit of $108,000? What sales level in units is required to earn an annual after-tax profit of $108,000 if the tax rate is 20%? Assume that through negotiation with the manufacturer, Super Sales Company is able to reduce its variable expenses by $3 per unit. What is the company’s new break-even point in units and in sales dollars? (Do not round intermediate calculations. Round your final answers to the nearest whole number.)

SEE MORE QUESTIONS

Recommended textbooks for you

Cornerstones of Cost Management (Cornerstones Ser…

Accounting

ISBN:

9781305970663

Author:

Don R. Hansen, Maryanne M. Mowen

Publisher:

Cengage Learning