Answered You can hire a professional tutor to get the answer.

# United Snack Company sells 40-pound bags of peanuts to university dormitories for $60 a bag. The fixed costs of this operation are $671,600, while...

United Snack Company sells 40-pound bags of peanuts to university dormitories for $60 a bag. The fixed costs of this operation are $671,600, while the variable costs of peanuts are $0.35 per pound.

**a. **What is the break-even point in bags?

**b. **Calculate the profit or loss (EBIT) on 11,000 bags and on 24,000 bags.

**c. **What is the degree of operating leverage at 19,000 bags and at 24,000 bags? **(Round your answers to 2 decimal places.)**

**d. **If United Snack Company has an annual interest expense of $35,000, calculate the degree of financial leverage at both 19,000 and 24,000 bags. **(Round your answers to 2 decimal places.)**

**e. **What is the degree of combined leverage at both a sales level of 19,000 bags and 24,000 bags? **(Round your answers to 2 decimal places.)**