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.
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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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- 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 AmountUnited 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. 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 $35,000, 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.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
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- Healthy Foods Incorporated sells 60-pound bags of grapes to the military for $15 a bag. The fixed costs of this operation are $90,000, while the variable costs of grapes are $0.15 per pound. a. What is the break-even point in bags? Note: Round your answer to 2 decimal places. Break-even point b. Calculate the profit or loss (EBIT) on 11,000 bags and on 32,000 bags. Bags 11,000 32,000 Bags 19,000 32,000 c. What is the degree of operating erage at 19,000 bags and at 32,000 bags? Note: Round your answers to 2 decimal places. Bags 19,000 32,000 Profit/Loss d. If Healthy Foods has an annual interest expense of $14,000, calculate the degree of financial leverage at both 19,000 and 32,000 bags. Note: Round your answers to 2 decimal places. Bags Degree of Operating Leverage 19,000 32.000 15,000.00 bags Degree of Financial Leverage Amount e. What is the degree of combined leverage at both 19,000 and 32,000 bags? Note: Round your answers to 2 decimal places. Degree of Combined LeveragePimpton Plows sells its product for $50. Its variable cost per unit is $19.00. Fixed costs total $434,000.How many units does the company need to sell to breakeven?What are the total sales in dollars at the breakeven point?How many units does the company need to sell to earn a profit of $155,000?Super Sales Company is the exclusive distributor for a high-quality knapsack. The product sells for $60 per unit and has a CM ratio of 40%. The company’s fixed expenses are $540,000 per year. The company plans to sell 26,000 knapsacks this year. Required: What are the variable expenses per unit? Use the equation method for the following: What is the break-even point in units and in sales dollars? What sales level in units and in sales dollars is required to earn an annual profit of $108,000? What sales level in units is required to earn an annual after-tax profit of $108,000 if the tax rate is 20%? Assume that through negotiation with the manufacturer, Super Sales Company is able to reduce its variable expenses by $3 per unit. What is the company’s new break-even point in units and in sales dollars? (Do not round intermediate calculations. Round your final answers to the nearest whole number.)
- Charlevoix Cases makes mobile phone cases. The company has collected the following price and cost characteristics: Sales price $ 12.00 per case Variable costs 5.50 per case Fixed costs 403,000 per year Assume that the company plans to sell 77,000 units annually. Consider requirements (b), (c), and (d) independently of each other. Required: What will be the operating profit? What is the impact on operating profit if the sales price decreases by 20 percent? Increases by 10 percent? Note: Do not round intermediate calculations. What is the impact on operating profit if variable costs per unit decrease by 20 percent? Increase by 10 percent? Note: Do not round intermediate calculations. Suppose that fixed costs for the year are 20 percent lower than projected and variable costs per unit are 20 percent higher than projected. What impact will these cost changes have on operating profit for the year? Will profit go up? Down? By how much? Note: Do not round intermediate…Healthy Foods Incorporated 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 $0.10 per pound. a. What is the break-even point in bags? Note: Round your answer to 2 decimal places. Break-even point b. Calculate the profit or loss (EBIT) on 13,000 bags and on 35,000 bags. Bags 13,000 35,000 Bags 21,000 35,000 c. What is the degree of operating leverage at 21,000 bags and at 35,000 bags? Note: Round your answers to 2 decimal places. Profit/Loss Bags 21,000 35,000 bags Degree of Operating Leverage d. If Healthy Foods has an annual interest expense of $6,000, calculate the degree of financial leverage at both 21,000 and 35.000 bags. Note: Round your answers to 2 decimal places. Amount Degree of Financial LeverageFlorida Citrus produced 40,000 boxes of fruit that sold for Rs. 3 per box. The total variable costs for the 40,000 boxes were Rs. 60,000, and the fixed costs were Rs.75,000. (a) How much profit (or loss) resulted? (b) What was the break-even quantity? (c) Assuming that fixed costs remain constant, how many additional boxes will be required for the company to increase profit by Rs. 22500.