I am having difficulty in understand the calculations for break-even point and degree of operation leverage - please help!
Local catering sells 50-pound bags of popcorn to schools for $10 a bag. The fixed costs of this operation is $80,000, while variable costs of popcorn are .10 per pound.
What is the break even point?
Calculate profit or loss on 12,000 bags and on 25,000 bags.
What is the degree of operating leverage at 20,000 bags and at 25,000 bags?
If someone can assist me in learning this, I would appreciate it.
Thank you. Need by Friday!
2006-07-26
16:29:34
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3 answers
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asked by
Anonymous