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1 ed out of e question United Snack Company sells 50-pound bags of peanuts to universty dormitories for $20 a bag. The fixed costs of
1 ed out of e question United Snack Company sells 50-pound bags of peanuts to universty dormitories for $20 a bag. The fixed costs of this operation are 5176,250, while the variable costs at peanuts are 5.15 per pound. a What is the break-even point in bags? b. Calculate the profit or loss on 7,000 bags and on 20,000 bags c. What is the degree of operating leverage at 19,000 bags and at 24000 bags? Why does the degree of operating leverage change as the quantity sold increases? d. If United Snack Company has an annual interest expense of $15,000, calculate the degree of financial leverage at both 19,000 and 24,000 bags
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