If the United Snack shop Company has an annual interest of 18,000. calulate the degree of...

If the United Snack shop Company has an annual interest of 18,000. calulate the degree of financial leverage at both 20,000 and 25,000 bags

20,000 bags and 25,000 bags interest $18,000. operation $244,800 50lb bags of peanuts at $0.18 per pound
what is the degree leverage per 20,000 bags?

Expert Solution

I DID SUM EARLIER SO I HAD DATA OF SELLING PRICE, IF IT IS CHANGED, LET ME KNOW, WILL DO IT ACCORDINGLY. THANK YOU

jeff jeffy answered 1 year ago

If United Snack Company has an annual interest of $18,000. calculate the degree of financial leverage...

If United Snack Company has an annual interest of $18,000. calculate the degree of financial leverage at 20,000 and 25,000 bags. with a cost of $26 per bag. 50lb bags at $0.18 per bag variable cost and $244 800 fixed cost of operation.

A. A store has sales of $421,000 with costs of $342,000. Interest expense is $18,000 and...

A. A store has sales of $421,000 with costs of $342,000. Interest expense is $18,000 and depreciation is $33,000. The tax rate is 34 percent. what is the net income? B. what is the price of a bond that pays annual coupons with a coupon rate 4.5%, has a face value of $1,000, matures in 11 years and has a yield to maturity of 10%? C. A firm has total debt of $4,850 and a debt-assets ratio of 0.5. What...

A United States Treasury bond pays annual interest, has a par value of $1,000, matures in...

A United States Treasury bond pays annual interest, has a par value of $1,000, matures in 24 years, has a coupon rate of 1.14% per annum, and has a yield to maturity (YTM) of 11.33% per annum. The default risk premium on the bond issued by a United States company called Risky Business in the United States is 2.89% per annum. The bond issued by Risky Business pays annual coupon, has a par value of $1,000, matures in 24 years and...

United Snack Company sells 60-pound bags of peanuts to university dormitories for $28 a bag. The...

United Snack Company sells 60-pound bags of peanuts to university dormitories for $28 a bag. The fixed costs of this operation are $240,700, while the variable costs of peanuts are $0.19 per pound. a. What is the break-even point in bags? b. Calculate the profit or loss (EBIT) on 11,000 bags and on 24,000 bags. c. What is the degree of operating leverage at 19,000 bags and at 24,000 bags? (Round your answers to 2 decimal places.) ...

United Snack Company sells 40-pound bags of peanuts to university dormitories for $60 a bag. The...

United 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. a. What is the break-even point in bags? Break-even point bags b. Calculate the profit or loss (EBIT) on 11,000 bags and on 24,000 bags. Bags Profit/Loss Amount 11,000 24,000 c. What is the degree of operating leverage at 19,000 bags and at 24,000 bags?...

United Snack Company sells 40-pound bags of peanuts to university dormitories for $42 a bag. The...

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? 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? (Round your answers to 2 decimal places.) ...

United Snack Company sells 60-pound bags of peanuts to university dormitories for $58 a bag. The...

United Snack Company sells 60-pound bags of peanuts to university dormitories for $58 a bag. The fixed costs of this operation are $545,200, while the variable costs of peanuts are $0.34 per pound. a. What is the break-even point in bags? 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? (Round your answers to 2 decimal places.) d. If United...

United Snack Company sells 60-pound bags of peanuts to university dormitories for $40 a bag. The...

United Snack Company sells 60-pound bags of peanuts to university dormitories for $40 a bag. The fixed costs of this operation are $305,000, while the variable costs of peanuts are $0.25 per pound. a. What is the break-even point in bags? Break-even point bags b. Calculate the profit or loss (EBIT) on 5,000 bags and on 18,000 bags. Bags Profit/Loss Amount 5,000 18,000 c. What is the degree of operating leverage at 17,000 bags and at 22,000 bags? (Round...

The company paid interest expense of $18,000 for 2017 and had an overall tax rate of...

The company paid interest expense of $18,000 for 2017 and had an overall tax rate of 40% for 2017. Find the cash flow from assets for 2017, and break it into its three parts: operating cash flow, capital spending, and change in net working capital. Sales_revenue 350,000 Cost_of_goods_sold 140,000 Fixed_costs 43,000 Selling,_general,_and_administrative_expenses 28,000 Depreciation 46,000 2016 ASSETS LIABILITIES Cash 16,000 Notes payable 14,000 Accounts receivable 28,000 Accounts payable 19,000 Inventories 48,000 Long-term debt 190,000 Fixed assets 368,000 OWNERS' EQUITY ...

At an output level of 18,000 units, you have calculated that the degree of operating leverage...

At an output level of 18,000 units, you have calculated that the degree of operating leverage is 2.10. The operating cash flow is $46,500 in this case. Ignore the effect of taxes. a. What are fixed costs? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. What will the operating cash flow be if output rises to 19,000 units? (Do not round intermediate calculations and round your answer to 2 decimal places,...

Question