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Please help me out with the last 3 parts. Thanks! Need it by 9/18 - 11:59pm United Snack Company sells 40-pound bags of peanuts to
Please help me out with the last 3 parts. Thanks! Need it by 9/18 - 11:59pm
United Snack Company sells 40-pound bags of peanuts to university dormitories for $18 a bag. The fixed costs of this operation are $173,600, while the variable costs of peanuts are $0.14 per pound. a. What is the break-even point in bags? Answer is complete and correct. 14,000 bags Break-even point b. Calculate the profit or loss (EBIT) on 8,000 bags and on 21,000 bags. Answer is complete and correct. Bags 8,000 21,000 Profit/Loss Loss Profit $ Amount 74,400 86,800 c. What is the degree of operating leverage at 20,000 bags and at 25,000 bags? (Round your answers to 2 decimal places.) Answer is not complete. Degree of Operating Leverage Bags 20,000 25,000 d. If United Snack Company has an annual interest expense of $14,000, calculate the degree of financial leverage at both 20,000 and 25,000 bags. (Round your answers to 2 decimal places.) Bags Degree of Financial Leverage 20,000 25,000 e. What is the degree of combined leverage at both a sales level of 20,000 bags and 25,000 bags? (Round your answers to 2 decimal places.) Bags Degree of Combined Leverage 20,000 25,000Step by Step Solution
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