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United Snack Company sells 60-pound bags of peanuts to university dormitories for $16 a bag. The fixed costs of this operation are $106,600, while the

United Snack Company sells 60-pound bags of peanuts to university dormitories for $16 a bag. The fixed costs of this operation are $106,600, while the variable costs of peanuts are $0.13 per pound. a. What is the break-even point in bags? Break-even point b. Calculate the profit or loss (EBIT) on 9,000 bags and on 22,000 bags. Bags 9,000 22,000 Bags bags Profit/Loss 17,000 22,000 c. What is the degree of operating leverage at 17,000 bags and at 22,000 bags? (Round your answers to 2 decimal places.) Degree of Operating Leverage Amount
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United Snack Company sells 60-pound bags of peanuts to university dormitories for $16 a bag. The fixed costs of this operation are $106,600, while the variable costs of peanuts are $0.13 per pound. a. What is the break-even point in bags? b. Calculatd the profit or loss (EBIT) on 9,000 bags and on 22,000 bags. c. What is the degree of operating leverage at 17,000 bags and at 22,000 bags? (Round your answers to 2 decimal places.)

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