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March 29, 2015

Posted by **marie** on Friday, April 2, 2010 at 6:08pm.

The fixed costs of this operation are $80,000, while the variable costs of the

Grapes are $.10 per pound.

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

- break even analysis -
**bobpursley**, Friday, April 2, 2010 at 6:36pmProfit=costs

10/50 * n=80000+.1n where n is number of pounds. n will have to be a multiple of 50 the way the bags are made.

.2n-.1n=80000

n= 800,000 lbs.

- break even analysis -
**Christee**, Friday, May 7, 2010 at 5:56pm16,000 bags

- break even analysis -
**Dorris**, Thursday, May 27, 2010 at 11:02pmwhat is the degree of operating leaverage at 20,000 bags and at 25,000 bags

- break even analysis -
**Diane**, Thursday, March 7, 2013 at 8:21pmThe degree of operating leverage at 20,000 bags and at 25,000 bags

DOL = (Quantity x (Selling Price - Variable Cost))/((Quantity x (Selling Price - Variable Cost))- Fixed Cost)

DOL (20,000) = (20,000*(10-5))/(((20,000*(10-5))-80,000) = 5 times

DOL (25,000) = (25,000*(10-5))/(((25,000*(10-5))-80,000) = 2.78 times

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