United Snack Company sells 40-pound bags of peanuts to university dormitories for $48 a bag. The fixed costs of this operation are $509,600, while the variable costs of peanuts are $.29 per pound.

a. What is the break-even point in bags?___________________

b. Calculate the profit or loss (EBIT) on 9,000 bags and on 22,000 bags.

Bags	Profit/Loss	Amount
9000
22,000

c. What is the degree of operating leverage at 17,000 bags and at 22,000 bags?

Bags	Degree of Operating Leverage
17,000
22,000

(Round your answers to 2 decimal places.)

d. If United Snack Company has an annual interest expense of $29,000, calculate the degree of financial leverage at both 17,000 and 22,000 bags. (Round your answers to 2 decimal places.)

Bags	Degree of financial leverage
17,000
22,000

e. What is the degree of combined leverage at both a sales level of 17,000 bags and 22,000 bags? (Round your answers to 2 decimal places.)

Bags	Degree of combined Leverage
17,000
22,000