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Healthy Foods Incorporated sells 40-pound bags of grapes to the military for $15 a bag....

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Accounting

Healthy Foods Incorporated sells 40-pound bags of grapes to the military for $15 a bag. The fixed costs of this
operation are $91,000, while the variable costs of grapes are $0.20 per pound.
a. What is the break-even point in bags?
Note: Round your answer to 2 decimal places.
b. Calculate the profit or loss (EBIT) on 10,900 bags and on 27,000 bags.
c. What is the degree of operating leverage at 18,900 bags and at 27,000 bags?
Note: Round your answers to 2 decimal places.
d. If Healthy Foods has an annual interest expense of $10,000, calculate the degree of financial leverage at both
18,900 and 27,000 bags.
Note: Round your answers to 2 decimal places.
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