Healthy Foods Inc. sells 50-pound bags of grapes to the military for $10 a bag. The fixed costs of this operation are $102,000, while the variable costs of grapes are $0.10 per pound. What is the break-even point in bags?
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- 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 LeverageHealthy 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 LeverageCarondelet 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?
- Pete Corporation produces bags of peanuts. Its fixed cost is $17,300. Each bag sells for $2.62 with a unit cost of $1.82. What is Pete's breakeven point?Juniper Enterprises sells handmade clocks. Its variable cost per clock is $6, and each clock sells for $24. The company’s fixed costs total $6,660.How many units must Juniper sell to earn a profit of at least $5,400?Yarn Basket, Ltd., sells handminus−knit scarves. Each scarf sells for $35. The company pays $350 to rent a vending space for one day. The variable costs are $10 per scarf. What total revenue amount does the company need to earn to break even?
- N.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 AmountOutback Outfitters sells recreational equipment. One of the company's products, a small camp stove, sells for $150 per unit. Variable expenses are $105 per stove, and fixed expenses associated with the stove total $216,000 per month. Required: 1. What is the break-even point in unit sales and in dollar sales? 2. If the variable expenses per stove increase as a percentage of the selling price, will it result in a higher or a lower break-even point? (Assume that the fixed expenses remain unchanged.) 3. At present, the company is selling 18,000 stoves per month. The sales manager is convinced that a 10% reduction in the selling price would result in a 25% increase in monthly sales of stoves. Prepare two contribution format income statements, one under present operating conditions, and one as operations would appear after the proposed changes. 4. Refer to the data in Required 3. How many stoves would have to be sold at the new selling price to attain a target profit of $72,000 per month?…
- Shalom Company manufactures Peace Products and sells it at P500 per unit. Variable manufacturing costs to manufacture is P200 per unit, while it incurs P150 per unit to sell. The fixed costs to manufacture and sell are P150,000 and P120,000, respectively. (1) How many units should Shalom Company sell to break-even? (2) If the company targets to earn profit of P300,000, how many units should Company sell?Friar Corp. sells two products. Product A sells for $112 per unit, and has unit variable costs of $65. Product B sells for $102 per unit, and has unit variable costs of $59. Currently, Friar sells three units of Product B for every one unit of Product A sold. Friar has fixed costs of $752,400. How many units would Friar have to sell to earn a profit of $250,800?sanju