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United Snack Company sells 60-pound bags of peanuts to university dormitories for $22 a bag. The fixed costs of this operation are $176,080, while the
United Snack Company sells 60-pound bags of peanuts to university dormitories for $22 a bag. The fixed costs of this operation are $176,080, while the variable costs of peanuts are S0.16 per pound. a. What is the break-even point in bags? Break-even point b. Calculate the profit or loss (EBIT) on 6,000 bags and on 19,000 bags Profit/Loss 8,000 19,000 c. What is the degree of operating leverage at 18,000 bags and at 23,000 bags? (Round your answers to 2 decimal places.) egree of Operating Leverage Bags 23,000
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