United Snack Company sells 40-pound bags of peanuts to university dormitories for $60 a bag. The fixed costs of this operation are $671,600, while the variable costs of peanuts are $0.35 per pound. a. What is the break-even point in bags?

Break-even point

bags

b. Calculate the profit or loss (EBIT) on 11,000 bags and on 24,000 bags.

Bags	Profit/Loss	Amount
11,000
24,000

c. What is the degree of operating leverage at 19,000 bags and at 24,000 bags? (Round your answers to 2 decimal places.)

Bags	Degree of Operating Leverage
19,000
24,000

d. If United Snack Company has an annual interest expense of $35,000, calculate the degree of financial leverage at both 19,000 and 24,000 bags. (Round your answers to 2 decimal places.)

Bags	Degree of Financial Leverage
19,000
24,000

e. What is the degree of combined leverage at both a sales level of 19,000 bags and 24,000 bags? (Round your answers to 2 decimal places.)

Bags	Degree of Combined Leverage
19,000
24,000