1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Salsk061 [2.6K]
3 years ago
12

Healthy Foods Inc. sells 60-pound bags of grapes to the military for $15 a bag. The fixed costs of this operation are $90,000, w

hile the variable costs of grapes are $0.15 per pound. a. What is the break-even point in bags? (Round your answer to 2 decimal places.) b. Calculate the profit or loss (EBIT) on 14,000 bags and on 35,000 bags. c. What is the degree of operating leverage at 21,000 bags and at 35,000 bags? (Round your answers to 2 decimal places.) d. If Healthy Foods has an annual interest expense of $17,000, calculate the degree of financial leverage at both 21,000 and 35,000 bags. (Round your answers to 2 decimal places.) e. What is the degree of combined leverage at both 21,000 and 35,000 bags? (Round your answers to 2 decimal places.)
Business
1 answer:
astraxan [27]3 years ago
6 0

Answer:

BEP units:   15,000 60-pounds bags

(B)

14,000 generates     6,000 loss

35,000 generates 120,000 net

(C) operating leverage: 2

(D) financial leverage: 1.63

(E) combined leverage: 3,26

Explanation:

\frac{Contribution \: Margin}{Sales \: Revenue} = Contribution \: Margin \: Ratio

Sales \: Revenue - Variable \: Cost = Contribution \: Margin

60 pounds sales price    =   $  15

60 pound cost: 60 x 0.15 =  $   9

Contribution Margin 6

\frac{Fixed\:Cost}{Contribution \:Margin} = Break\: Even\: Point_{units}

Fixed Cost 90,000

BEP units:   15,000

(B) profit at given level:

sales x margin - fixed cost = net profit

14,000 x 6 - 90,000  =  (6,000)

35,000 x 6 - 90,000 = 120,000

(C) operating leverage: change in EBIT / change in sales

income at 21,000 x 6 - 90,000 = 36,000

EBIT change:

120,000/36,000 = 3 + 1/3

Slaes change:

35,000/21,000 = 1 + 2/3

operating leverage:

(3 + 1/3) / (1 + 2/3) = 2

(d) financial leverage

<u>change in net income: </u>

(120,000 - 17,000) / (36,000 - 17,000)

103,000 / 19,000 = 103/19

<u>change in EBIT</u> 3 + 1/3 (already calculate

(103/19) / (3+1/3) = 1.626315789

(E) combined

2 x 1.626315789 = 3,252631578‬

You might be interested in
It is necessary to balance your checking account each month<br><br> true<br> false
yuradex [85]

Answer:

true so that you know what you have spent

8 0
3 years ago
Read 2 more answers
Time Remaining 1 hour 8 minutes 42 seconds01:08:42 Item 5 Time Remaining 1 hour 8 minutes 42 seconds01:08:42 Crich Corporation u
emmasim [6.3K]

Answer:

under-applied overheads is $1,340

Explanation:

Note : I have attached the full question/similar as an image below.

Actual Overheads   = $594,960

Applied Overheads = $594,960 / 22,200 x 22,150 = $593,620

Since,

Actual Overheads  > Applied Overheads, overheads have been under-applied.

Amount of under-applied overheads is $1,340 ($594,960 - $593,620).

5 0
2 years ago
What degree do you need for a cosmetologist
Stella [2.4K]
You really don't have to have a degree most of my friends are cosmetologist and they don't have degrees they just have license
4 0
2 years ago
Should the NLRB require union organizer access to the workplace as a quid pro quo for an employer demanding an election rather t
rewona [7]

Answer: yes

Explanation:this is so because When a union wants to unionize a new group of employees, it must first convince at least 30% of the employees to sign authorization cards. If the union successfully does so, the union then submits the cards to the NLRB for certification. If the NLRB certifies that the union has secured cards from 30% of the employees, it orders that a secret ballot election be held where the employees vote on whether to unionize. Typically, about two months pass between the time the NLRB certifies the cards and the time that the election actually takes place. During these two months, the union and the employer actively campaign for or against unionization. At the election, if a majority of employees vote to unionize, then the NLRB recognizes the union as the sole bargaining representative of the employees. The employer is then required by statute to bargain in good faith with the union to negotiate the “first contract” between the employees and the employer. This employment contract determines the terms and conditions for all employees represented by the union.

3 0
3 years ago
You are considering two ways of financing a spring break vacation. you could put it on your credit​ card, at 17 % ​apr, compound
shutvik [7]
<span>Credit card has slightly lower interest rate. Let's take a look at both interest rates for 1 year and see what costs more. First, the credit card at 17% apr compounded monthly. Each month, 17%/12 interest will be taken. The total interest over the year will be (1 + 0.17/12)^12 = 1.183891728 times the original debt. Now let's look at the loan from the parents. Over 1 year, you'll be accumulating 2 interest payments. The formula for the year will be (1 + 0.09)^2 = 1.1881 Comparing the overall rate between the credit card and the parents, the credit card is slightly lower than the parents.</span>
7 0
3 years ago
Other questions:
  • Raner, Harris, &amp; Chan is a consulting firm that specializes in information systems for medical and dental clinics. The firm
    10·1 answer
  • Define osmosis and predict the direction of water movement based on differences in solute concentrations.
    8·1 answer
  • By combining their resources and developing shared goals, procter &amp; gamble and walmart were able to increase the value to th
    6·1 answer
  • Hotel clerks, amusement park workers, and travel agents all work in careers found in the _____ career cluster.
    7·2 answers
  • The market price of cheeseburgers in a college town increased recently, and the students in an economics class are debating the
    8·1 answer
  • Ahmed promises to sell his boat to mendel, and mendel promises to buy it from ahmed. what type of contract is this?
    13·1 answer
  • Harry, Hermione, and Ron formed an S corporation called Bumblebore. Harry and Hermione both contributed cash of $40,300 to get t
    5·1 answer
  • if there was a shirt that looks identical but came out in two different seasons how do you explain the price difference to the c
    5·1 answer
  • Ill give Brainliest to the one that awnsers
    15·1 answer
  • What resource is available to help scope out your clients' needs in QBO
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!