## (Solved) United Snack Company sells 40-pound bags of peanuts to university dormitories for \$18 a bag. The fixed costs of this operation are \$173,600, while...

United Snack Company sells 40-pound bags of peanuts to university dormitories for \$18 a bag. The fixed costs of this operation are \$173,600, while the variable costs of peanuts are \$.14 per pound.

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 a. Â What is the break-even point in bags? (Round your answer to the nearest whole number.)

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 Â Â Break-even point bags Â
 b. Calculate the profit or loss (EBIT) on 8,000 bags and on 21,000 bags. (Input all amounts as positive values. Round your answers to the nearest whole number.)

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 Bags Profit/Loss Amount 8,000 Â Â Â Â Â Â Â (Click to select)LossProfit Â \$ Â 21,000 Â Â Â Â Â Â Â (Click to select)ProfitLoss Â \$ Â

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 c. What is the degree of operating leverage at 20,000 bags and at 25,000 bags? (Round your answers to 2 decimal places.)
 Bags Degree of Operating Leverage 20,000 Â Â Â Â Â Â Â 25,000 Â Â Â Â Â Â Â

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 d. If United Snack Company has an annual interest expense of \$14,000, calculate the degree of financial leverage at both 20,000 and 25,000 bags. (Round your answers to 2 decimal places.)

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 Bags Degree of Financial Leverage 20,000 Â Â Â Â Â Â Â 25,000 Â Â Â Â Â Â Â
 e. What is the degree of combined leverage at both a sales level of 20,000 bags and 25,000 bags? (Round your answers to 2 decimal places.)
 Bags Degree of Combined Leverage 20,000 Â Â Â Â Â Â Â 25,000 Â Â Â Â Â Â

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