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United Snack Company sells 50-pound bags of peanuts to university dormitories for $22 a bag. The fixed costs of this operation are $186,250, while
United Snack Company sells 50-pound bags of peanuts to university dormitories for $22 a bag. The fixed costs of this operation are $186,250, 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.) 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.) c. What is the degree of operating leverage at 19,000 bags and at 24,000 bags? (Round your answers to 2 decimal places.) d. If United Snack Company has an annual interest expense of $15,000, calculate the degree of financial leverage at both 19,000 and 24,000 bags. (Round your answers to 2 decimal places.) 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.)
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