a. What is the break-even point in bags? b. Calculate the profit or loss on 18,000 bags. c. What is the degree of operating leverage at 20,000 bags ?
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- Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22 each in the coming year. Total variable costs equal 1,086,800. Total fixed costs equal 8,000,000. (Round all ratios to four significant digits, and round all dollar amounts to the nearest dollar.) Required: 1. What is the contribution margin per unit? What is the contribution margin ratio? 2. Calculate the sales revenue needed to break even. 3. Calculate the sales revenue needed to achieve a target profit of 245,000. 4. What if the average price per unit increased to 23.50? Recalculate: a. Contribution margin per unit b. Contribution margin ratio (rounded to four decimal places) c. Sales revenue needed to break even d. Sales revenue needed to achieve a target profit of 245,000Healthy Foods Inc. sells 50-pound bags of grapes to the military for $10 a bag. The fixed costs of this operation are $102,000, while the variable costs of grapes are $0.10 per pound. a. What is the break-even point in bags? (Round your answer to 2 decimal places.) b. Calculate the profit or loss (EBIT) on 11,000 bags and on 30,000 bags. c. What is the degree of operating leverage at 25,000 bags and at 30,000 bags? (Round your answers to 2 decimal places.) d. If Healthy Foods has an annual interest expense of $12,000, calculate the degree of financial leverage at both 25,000 and 30,000 bags. (Round your answers to 2 decimal places.) e. What is the degree of combined leverage at both 25,000 and 30,000 bags? (Round your answers to 2 decimal places.)United Snack Company sells 40-pound bags of peanuts to university dormitories for $42 a bag. The fixed costs of this operation are $417,120, while the variable costs of peanuts are $0.26 per pound. a. What is the break-even point in bags? Break-even point b. Calculate the profit or loss (EBIT) on 12,000 bags and on 25,000 bags. Bags 12,000 Loss 25,000 Profit Profit/Loss Bags 20,000 25,000 bags c. What is the degree of operating leverage at 20,000 bags and at 25,000 bags? Note: Round your answers to 2 decimal places. Degree of Operating Leverage Amount
- Healthy Foods Inc. sells 50-pound bags of grapes to the military for $10 a bag. The fixed costs of this operation are $92,000, while the variable costs of grapes are $0.10 per pound. a. What is the break-even point in bags? (Round your answer to 2 decimal places.) Break-even point bags b. Calculate the profit or loss (EBIT) on 16,000 bags and on 34,000 bags. Bags Profit/Loss Amount 16,000 34,000 c. What is the degree of operating leverage at 26,000 bags and at 34,000 bags? (Round your answers to 2 decimal places.) Bags Degree of Operating Leverage 26,000 34,000 d. If Healthy Foods has an annual interest expense of $10,000, calculate the degree of financial leverage at both 26,000 and 34,000 bags. (Round your answers to 2 decimal places.) Bags Degree of Financial Leverage 26,000 34,000 e. What is the degree of combined leverage at both 26,000 and 34,000 bags? (Round your answers to 2 decimal places.) Bags Degree of…Bernard Tires sells tires to car dealerships for an average of $30 each. The variable cost of each tire is $20, and monthly fixed manufacturing costs total $10,000. Other monthly fixed costs of the company total $8,000. Assuming sales total $60,000, what is the margin of safety?Healthy Foods Incorporated sells 60-pound bags of grapes to the military for $15 a bag. The fixed costs of this operation are $90,000, while the variable costs of grapes are $0.15 per pound. a. What is the break-even point in bags? Note: Round your answer to 2 decimal places. Break-even point b. Calculate the profit or loss (EBIT) on 11,000 bags and on 32,000 bags. Bags 11,000 32,000 Bags 19,000 32,000 c. What is the degree of operating erage at 19,000 bags and at 32,000 bags? Note: Round your answers to 2 decimal places. Bags 19,000 32,000 Profit/Loss d. If Healthy Foods has an annual interest expense of $14,000, calculate the degree of financial leverage at both 19,000 and 32,000 bags. Note: Round your answers to 2 decimal places. Bags Degree of Operating Leverage 19,000 32.000 15,000.00 bags Degree of Financial Leverage Amount e. What is the degree of combined leverage at both 19,000 and 32,000 bags? Note: Round your answers to 2 decimal places. Degree of Combined Leverage
- 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? Note: Round your answer to 2 decimal places. Break-even point b. Calculate the profit or loss (EBIT) on 13,000 bags and on 35,000 bags. Bags 13,000 35,000 Bags 21,000 35,000 c. What is the degree of operating leverage at 21,000 bags and at 35,000 bags? Note: Round your answers to 2 decimal places. Profit/Loss Bags 21,000 35,000 bags Degree of Operating Leverage d. If Healthy Foods has an annual interest expense of $6,000, calculate the degree of financial leverage at both 21,000 and 35.000 bags. Note: Round your answers to 2 decimal places. Amount Degree of Financial LeverageA company sells a toy for $12.80 each. The material, labour, and marketing costs add up to $1.00 per toy. The company also bears fixed costs of $10,100 per month related to this particular product. If the company produces and sells 850 toys each month, what is its monthly net income? Monthly net income = $ there is a loss.) (Enter your answer as negative ifNight Shades Inc. (NSI) manufacturers biotech sunglasses. These sunglasses sell for $150 each, and cost $70 each to produce. Night Shades Inc. has fixed costs of $100,000.a. Calculate Night Shades' Breakeven point.b. how much profit (loss) will Night Shades have if it sells 500 sunglasses? 4,000 sunglasses?c. Night Shades' manager expects an operation profit of $200,000. How many sunglasses must be sold to attain this profit?
- Night Shades Inc. (NSI) manufactures biotech sunglasses. These sunglasses sell for $150 each, and cost $70 each to produce. Night Shades Inc. has fixed costs of $100,000. a. Calculate Night Shades’ Breakeven point. b. how much profit (loss) will Night Shades have if it sells 500 sunglasses? 4,000 sunglasses? c. Night Shades’ manager expects an operating profit of $200,000. How many sunglasses must be sold to attain this profit?Marsh Motors sells 5,000 motors a year for $30 apiece. Variable costs are $8 per unit, and total fixed costs are $85,000 a year. If the company wants to earn $6 net income per motor sold, approximately how many motors must it sell?Hammerhead Charters runs fishing trips out of the local port. Hammerhead charges $90 per trip for a half-day trip. Variable costs for Hammerhead total $40 per trip and the fixed costs are $18,000 per month. Hammerhead is subject to an income tax rate of 25 percent. Required: How many trips must Hammerhead sell to break even? How many trips must Hammerhead sell to earn a monthly operating profit of $15,000 after taxes?