A Seed Company Sells Two Grades of Grass Seed

question 60

Essay

A seed company sells two grades of grass seed. A 100-pound bag of a mixture of rye and Kentucky bluegrass sells for $245, and a 100-pound bag of bluegrass sells for $347. The receipts for 18 bags are $4,920. How many bags of the mixture are sold in a week?
__________ bags How many bags of the bluegrass are sold in a week?
__________ bags

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Definitions:

Degree of Total Leverage

A financial ratio that measures the sensitivity of a company's earnings per share to fluctuations in its operating income, considering both operating and financial leverage.

Financial Risk

The possibility of losing money on an investment or business venture, including various types of risks like market risk, credit risk, and operational risk.

Business Risk

The exposure a company or investor faces due to uncertainties in the operating environment, impacting its profitability.

Contribution Margin

The selling price per unit, minus the variable cost per unit, indicating the contribution towards covering fixed costs and profit.