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       

 

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