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 pointb. Calculate the profit or loss (EBIT) on 13,000 bags and on 35,000 bags.Bags13,00035,000Bags21,00035,000c. 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/LossBags21,00035,000bagsDegree of OperatingLeveraged. If Healthy Foods has an annual interest expense of $6,000, calculate the degree of financial leverage at both 21,000 and 35.000bags.Note: Round your answers to 2 decimal places.AmountDegree of FinancialLeverage

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Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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If the sales price is $150 per unit, the variable cost is $90 per unit, and total fixed costs is $24,000, the breakeven in sales dollars is: Question 5 options: $15,000. $24,000. $36,000. $60,000.
Assume that the most efficient production technology available for making vitamin pills has the cost structure given in the following table. Note that output is measured as the number of bottles of vitamins produced per day and that costs include a normal profit. Output TC 25,000 50,000 $100,000 MC $0.50 150,000 1.00 75,000 187,500 2.50 100,000 275,000 3.00 a. What is ATC per unit for each level of output listed in the table? Instructions: Round your answers to two decimal places. Output TC MC ATC 25,000 $100,000 $0.50 $ 50,000 150,000 1.00 $ 75,000 187,500 2.50 $ 100,000 275,500 3.00 $ b. Is this a decreasing-cost industry? (Click to select) c. Suppose that the market price for a bottle of vitamins is $2.50 and that at that price the total market quantity demanded is 75,000,000 bottles. How many firms will there be in this industry? firm(s) d. Suppose that, instead, the market quantity demanded at a price of $2.50 is only 75,000. How many firms do you expect there to be in this…
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Healthy while Dags of grapes to the military 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 bags a bag. The fixed costs of this operation are $80,000