# Mo & Chris’s Delicious Burgers, Inc., sells food to Military Cafeterias for \$29 a box. The fixed 1 answer below »

Mo & Chris’s Delicious Burgers, Inc., sells food to Military Cafeterias for \$29 a box. The fixed costs of this operation are \$132,000, while the variable cost per box is \$17.

(a)

What is the break-even point in boxes?

Break-even point boxes

(b)

Calculate the profit or loss on 14,000 boxes and on 29,500 boxes. (Input all amounts as positive values. Omit the “\$” sign in your response.)

Boxes Profit/Loss Amount 14,000      (Click to select)ProfitLoss   \$    29,500      (Click to select)LossProfit   \$

(c)

What is the degree of operating leverage at 13,000 boxes and at 29,500 boxes? (Enter only numeric value rounded to 2 decimal places.)

Boxes Degree of
operating leverage 13,000                   29,500

(d)

If the firm has an annual interest expense of \$10,700, calculate the degree of financial leverage at both 13,000 and 29,500 boxes.(Enter only numeric value rounded to 2 decimal places.)

Boxes Degree of
financial leverage 13,000                   29,500

(e)

What is the degree of combined leverage at both sales levels? (Enter only numeric value rounded to 2 decimal places.)

Boxes Degree of
combined leverage 13,000                  29,500