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United Snack Company sells 50-pound bags of peanuts to university dormitories for $20 a bag. The fixed costs of this operation are $176,250, while the
United Snack Company sells 50-pound bags of peanuts to university dormitories for $20 a bag. The fixed costs of this operation are $176,250, while the variable costs of peanuts are $.15 per pound. a. What is the break-even point in bags? (Round your answer to the nearest whole number.) Break-even point bags b. Calculate the profit or loss (EBIT) on 7,000 bags and on 20,000 bags. (Input all amounts as positive values. Round your answers to the nearest whole number.) Ba Profit/Loss Amount 7,000 000 (Click to select) | (Click to select) 20,000 (Click to select) 20,000 (Click to select) v c. What is the degree of operating leverage at 19,000 bags and at 24,000 bags? (Round your answers to 2 decimal places.) Degree of Operating Leverage Bags 19,000 24,000
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