Question
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
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? Break-even point 14000 bags b. Calculate the profit or loss (EBIT) on 8,000 bags and on 21,000 bags. Bags 8,000 21,000 Profit/Loss Amount 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
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