Question: need help with C & D Problem 5-13 (Algo) Break-even point and degree of leverage [LO5-2, 5-5] United Snack Company sells 40 pound bags of
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Problem 5-13 (Algo) Break-even point and degree of leverage [LO5-2, 5-5] 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, whille the variable costs of peanuts are $0.26 per pound. o. What is the break-even point in bags? Answer is complete and correct. Breakeven point bros b. Calculate the profit or loss (EBiT) on 12,000 bags and on 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. Answer is not complete. d. If United Snack Company has an annual interest expense of $26,000, calculate the degree of financial leverage at both 20,000 and 25,000 bags Note: Round your answers to 2 decimal places
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