What is the degree of operating leverage

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Problem: United Snack Company sells 60-pound bags of peanuts to university dormitories for $52 a bag. The fixed costs of this operation are $474,280, while the variable costs of peanuts are $0.31 per pound.

What is the degree of operating leverage at 19,000 bags and at 24,000 bags? 

If United Snack Company has an annual interest expense of $31,000, calculate the degree of financial leverage at both 19,000 and 24,000 bags.

What is the degree of combined leverage at both a sales level of 19,000 bags and 24,000 bags?

Reference no: EM132419775

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