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United Snack Company sells 5 0 - pound bags of peanuts to university dormitories for $ 2 6 a bag. The fixed costs of this

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. What is the break-even point in bags? Problem 5-13(Algo) Break-even point and degree of leverage [LOS-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. The BEP (Break-even point is 14,400
b. Calculate the profit or loss (EBIT) on 12,000 bags and on 25,000 bags.?
EBIT 12,000=-40,800 EBIT 25,000=180,200
c.What is the degree of operating leverage at 20,000 bags and 25,000 bags?
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.?

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