Healthy Foods Inc.

strong Foods Inc. 1 firm Foods Inc. Robert Johnson FIN /200 - conception To finance: Harvesting The Money Tree 8/12/2011 instructor: Joseph Lane Healthy Foods Inc. 2 Healthy Foods, Inc., sells 50-pound bags of grapes to the armed services for $10 a bag. The stubborn cost of this operation be $80,000, while the variable costs 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 qualifying on 12,000 bags and on 25,000 bags.

Total Variable Fixed be Total cost 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 direct 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 trade union movement= 20,000($10-$5) - $80,000 = $20,000 = 5 25,000($10 - $5) $125,000 undertaking = 25,000($10-$5)- $80,000 = $45,000 = 2.8 Because the father away you get from the breakeven point the smaller the percentages is discommode 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 it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper