Question
United Snack Company sells 50-pound bags of peanuts to university dormitories for $44 a bag. The fixed costs of this operation are $381,250, while the
United Snack Company sells 50-pound bags of peanuts to university dormitories for $44 a bag. The fixed costs of this operation are $381,250, while the variable costs of peanuts are $0.27 per pound. a. What is the break-even point in bags? Break-even point b. Calculate the profit or loss (EBIT) on 11,000 bags and on 24,000 bags. Bags 11,000 24,000 Bags Profit/Loss 19.000 24.000 bags c. What is the degree of operating leverage at 19,000 bags and at 24,000 bags? Note: Round your answers to 2 decimal places. Degree of Operating Leverage Amount < Prev 4 of 7 Next>
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