Here's a previous answer for your question.
http://www.jiskha.com/display.cgi?id=1270246117
Healthy Food, 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 coast of the grapes are $.10 per pound.
2 answers
Why does the degree of operating leaverage changes as the quantity sold increase?