What is the break-even point in bags

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Reference no: EM133132016

Question - United Snack Company sells 50-pound bags of peanuts to university dormitories for $56 a bag. The fixed costs of this operation are $568,800, while the variable costs of peanuts are $0.33 per pound.

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

b. Calculate the profit or loss (EBIT) on 5,000 bags and on 18,000 bags.

c. What is the degree of operating leverage at 17,000 bags and at 22,000 bags?

Reference no: EM133132016

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