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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 bags

(b)

Calculate the profit or loss on 9,000 bags and on 22,000 bags. (Input all amounts as positive values. Omit the "$" sign in your response.)

Bags Profit/Loss Amount
9,000 (Click to select)ProfitLoss $
22,000 (Click to select)LossProfit $

(c)

What is the degree of operating leverage at 17,000 bags and at 22,000 bags? (Enter only numeric value rounded to 2 decimal places.)

Bags Degree of operating leverage
17,000
22,000

(d)

If United Snack Company has an annual interest expense of $13,000, calculate the degree of financial leverage at both 17,000 and 22,000 bags. (Enter only numeric value rounded to 2 decimal places.)

Bags Degree of financial leverage
17,000
22,000

(e)

What is the degree of combined leverage at both sales levels? (Enter only numeric value rounded to 2 decimal places.)

Bags Degree of combined leverage
17,000
22,000

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