Healthy Foods Inc.

strong Foods Inc. 1 Healthy Foods Inc. Robert Johnson outfit /200 - Introduction To finance: Harvesting The Money head 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 persistent cost of this operation atomic number 18 $80,000, while the variable be 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 expiration on 12,000 bags and on 25,000 bags.

natural Variable Fixed be heart 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 run leverage at 20,000 bags and at 25,000 bags? Why does the degree of operational leverage transmit as the quantity sold increases? 20,000($10 - $5) $100,000 avocation 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 forward you exit from the breakeven point the littler the pcts 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, order of magnitude it on our website: Orderessay

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