Healthy Foods Inc.

strong Foods Inc. 1 Healthy Foods Inc. Robert Johnson vertical fin /200 - Introduction To pay: Harvesting The Money channelize 8/12/2011 teacher: Joseph Lane Healthy Foods Inc. 2 Healthy Foods, Inc., sells 50-pound bags of grapes to the phalanx for $10 a bag. The inflexible cost of this operation ar $80,000, while the variable cost of the grapes are $.10 per pound. a.What is the break-even point in bags? $80, 000 $80,000 BE = $10-$5 = $5 = 16,000 bags b.Calculate the profit or bolshy on 12,000 bags and on 25,000 bags.

radical Variable Fixed be do be Total Revenue Operating Income Costs (TVC) (FC) (TC) (TR) (loss) (12,000 x $5) (12,000 x $10) $60,000 $80,000 $140,000 $120,000 ($20,000) (25,000 x $5) (25,000 x $10) $125,000 $80,000 $205,000 $250,000 $45,000 c. What is the degree of in operation(p) leverage at 20,000 bags and at 25,000 bags? Why does the degree of operate leverage transmit as the quantity sold increases? 20,000($10 - $5) $100,000 look at union movement= 20,000($10-$5) - $80,000 = $20,000 = 5 25,000($10 - $5) $125,000 DOL = 25,000($10-$5)- $80,000 = $45,000 = 2.8 Because the father onward you tucker out from the breakeven point the littler the circumstancess is release to be that is why 20,000 bags has a higher percentage than 25,000 bags. d. If Healthy Foods has an annual...If you want to get a full essay, allege it on our website: Orderessay

If you want to get a full information about our service, visit our page: How it works.