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space return Check my work Problem 5-13 Break-even point and degree of leverage (LO5-2,5- 5) United Snack Company sells 50-pound bags of peanuts to university

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space return Check my work Problem 5-13 Break-even point and degree of leverage (LO5-2,5- 5) United Snack Company sells 50-pound bags of peanuts to university dormitories for $26 a bag. The fixed costs of this operation are $244.800, while the variable costs of peanuts are $0.18 per pound. a. What is the break-even point in bags? Break-even point 14,400 bags b. Calculate the profit or loss (EBIT) on 12,000 bags and on 25,000 bags. Amount Bags Profit/Loss 12,000 Loss 25,000 Profit $ 180,200 es c. What is the degree of operating leverage at 20,000 bags and at 25,000 bags? (Round your answers to 2 decimal places.) Bags 20,000 Degree of Operating Leverage f g h j k 1 cvbnm space return c. What is the degree of operating leverage at 20,000 bags and at 25,000 bags? (Round your answers to 2 decimal places.) Bags Degree of Operating Leverage 20,000 25,000 d. If United Snack Company has an annual interest expense of $18,000, 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 6 of 7 ancial space return 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 25,000

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