Accounting-business

posted by .

Healthy Foods, Inc., sells 50-pound bags of grapes to the military for $10 a bag. What is the degree of combined leverage at both sales levels? Chapter 5 page 144 problem 13 in Foundations of Financial Management.
This is what I have so far can you tell me if this is correct?
For 20,000 bags: You take the DOL, which is 5, and the DFL, which is 2, 5x2 = 10
For 25,000 bags: You take the DOL 2.78 x the DFL 1.29 = 3.57
Degree of combined leverage = DOL x DFL = 3.57
t?

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Accounting

    Healthy Foods, Inc., sells 50-pound bags of grapes to the military for $10 a bag. What is the degree of combined leverage at both sales levels?
  2. Finance

    Healthy Foods, Inc., 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 the grapes are $.10 per pound. a. What is the break-even point in bags?
  3. fiance

    13. Healthy Foods, Inc., 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 the grapes are $.10 per pound. a. What is the break-even point in bags?
  4. fin. am I correct?

    13. Healthy Foods, Inc. 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 the Grapes are $.10 per pound. a. What is the break-even point in bags?
  5. fin. am I correct?

    13. Healthy Foods, Inc. 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 the Grapes are $.10 per pound. a. What is the break-even point in bags?
  6. i needhelp with e and i want to know if i am right

    13. Healthy Foods, Inc. 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 the Grapes are $.10 per pound. a. What is the break-even point in bags?
  7. INB

    13. Healthy Foods, Inc. 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 the Grapes are $.10 per pound. a. What is the break-even point in bags?
  8. Math

    Healthy Foods, Inc., 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 the grapes are $.10 per pound. a. What is the break-even point in bags?
  9. Fin 200

    Healthy Foods, Inc., 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 the grapes are $.10 per pound. a. What is the break-even point in bags?
  10. Finance

    Organic Foods Inc. sells 50-pound bags of grapes to the public schools for $10 a bag. The fixed costs of this operation are $80,000, while the variable costs of grapes are $.10 per pound. a. What is the break-even point in bags?

More Similar Questions