Healthy Foods Incorporated sells 50-pound bags of grapes to the military for $10 a bag. The fixed costs of this operation are $80,000, while the variable costs of grapes are $0.10 per pound. 

a. What is the break-even point in bags? 

b. Calculate the profit or loss (EBIT) on 13,000 bags. 

c. Calculate the profit or loss (EBIT) on 35,000 bags. 

d. What is the degree of operating leverage at 35,000 bags?

Answer rating: 100% (QA)

Break even Variable cost per bag Variable cost per pound x ... View the full answer