Question:United Snack Company sells 50-pound bags ofpeanuts to university dormitories for $20 a bag.The fixed costs of this operation are $176,250,while the variable costs of peanuts are $.15 perpound. If United Snack Company has an annualinterest expense of $15,000, calculate the degreeof financial leverage at both 19,000 and 24,000bags. (Round your answers to 2 decimal places.)What is the degree of combined leverage at botha sales level of 19,000 bags and 24,000 bags?(Round your answers to 2 decimal places.)

To solve this, we'll calculate the degree of financial leverage (DFL) and degree of combined…

Answered: Question: United Snack Company sells…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 16E

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United Snack Company sells 50-pound bags of peanuts to university dormitories for $5 a bag. The fixed costs of this operation are $60,000, while the variable costs of peanuts are $.5 per pound. a. What is the break-even point in bags? b. Calculate the profit or loss on 18,000 bags. c. What is the degree of operating leverage at 20,000 bags ? d. If United Snack Company has an annual interest expense of $10,000, and EBIT $80.000, calculate the degree of financial leverage at 18,000. e. What is the degree of combined leverage at both sales level
United Snack Company sells 40-pound bags of peanuts to university dormitories for $42 a bag. The fixed costs of this operation are $417,120, while the variable costs of peanuts are $0.26 per pound. a. What is the break-even point in bags? Break-even point b. Calculate the profit or loss (EBIT) on 12,000 bags and on 25,000 bags. Bags 12,000 Loss 25,000 Profit Profit/Loss Bags 20,000 25,000 bags c. What is the degree of operating leverage at 20,000 bags and at 25,000 bags? Note: Round your answers to 2 decimal places. Degree of Operating Leverage Amount
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United Snack Company sells 50-pound bags of peanuts to university dormitories for $44 a bag. The fixed costs of this operation are $381,250, while the variable costs of peanuts are $0.27 per pound. What is the break-even point in bags? Calculate the profit or loss (EBIT) on 11,000 bags and on 24,000 bags. What is the degree of operating leverage at 19,000 bags and at 24,000 bags? Note: Round your answers to 2 decimal places. If United Snack Company has an annual interest expense of $27,000, calculate the degree of financial leverage at both 19,000 and 24,000 bags. Note: Round your answers to 2 decimal places. What is the degree of combined leverage at both a sales level of 19,000 bags and 24,000 bags? Note: Round your answers to 2 decimal places.
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Healthy Foods Inc. sells 50-pound bags of grapes to the military for $10 a bag. The Fixed costs of this operation are $80,000. while the variable costs of grapes are $.10 per pound. A. What is the degree of the operating leverage at 20,000 bags and at 25,000 bags? Why does the degree of operating leverage change as the quantity sold increases? B. If Healthy Foods has an annual interest expense of $10,000 calculate the degree of financial leverage at both 20,000 and 25,000 bags. C. What is the degree of combined leverage at both sales levels?
Please help me fast
naru

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