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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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