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United Snack Company sells 6 0 - pound bags of peanuts to university dormitories for $ 3 4 a bag. The fixed costs of this

United Snack Company sells 60-pound bags of peanuts to university dormitories for $34 a bag. The fixed costs of this operation are $307,840, while the variable costs of peanuts are $0.22 per pound.
a. What is the break-even point in bags?
Break-even point
bags
b. Calculate the profit or loss (EBIT) on 8,000 bags and on 21,000 bags.
\table[[Bags,Profit/Loss,Amount],[8,000,,],[21,000,,]]
c. What is the degree of operating leverage at 20,000 bags and at 25,000 bags?
Note: Round your answers to 2 decimal places.
\table[[Bags,\table[[Degree of Operating],[Leverage]]],[20,000,],[25,000,]]
If United Snack Company has an annual interest expense of $22,000, calculate the degree of financial leverage at both 20,000 and 25,000 bags.
Note: Round your answers to 2 decimal places.
\table[[Bags,\table[[Degree of Financial],[Leverage]]],[20,000,],[25,000,]]
e. What is the degree of combined leverage at both a sales level of 20,000 bags and 25,000 bags?
Note: Round your answers to 2 decimal places.
\table[[Bags,\table[[Degree of Combined],[Leverage]]],[20,000,],[25,000,]]
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