John Tripper Soft Drinks, Inc., sells 500,000 bottles of soft drinks a year. Each bottle produced has a variable cost of $0.25 and sells for $0.45. Fixed operating costs are $50,000. The company has current interest charges of $6,000 and preferred dividends of $2,400. The corporate tax rate is 40 percent.                 (a) Calculate the degree of operating leverage, the degree of financial leverage, and the degree of total leverage

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.

Callie Corporation’s products sell for $180 each. The variable cost of each product is $135, and fixed operating costs are $371,250. Callie pays $61,875 interest on its outstanding debt each year, and its marginal tax rate is 40 percent. If Callie expects to sell 11,000 units, what is its degree of operating leverage (DOL), its degree of financial leverage (DFL), and its degree of total leverage (DTL)? The firm has no preferred stock.

Wingler Communications Corporation (WCC) produces airpods that sell for $28.70 per set, and this year's sales are expected to be 450,000 units. Variable production costs for the expected sales under present production methods are estimated at $10,500,000, and fixed production (operating) costs at present are $1,560,000. WCC has $4,800,000 of debt outstanding at an interest rate of 7%. There are 240,000 shares of common stock outstanding, and there is no preferred stock. The dividend payout ratio is 70%, and WCC is in the 25% federal-plus-state tax bracket. WCC is a small company with average sales of $25 million or less during the past 3 years, so it is exempt from the interest deduction limitation. The company is considering investing $7,200,000 in new equipment. Sales would not increase, but variable costs per unit would decline by 20%. Also, fixed operating costs would increase from $1,560,000 to $1,800,000. WCC could raise the required capital by borrowing $7,200,000 at 10% or by…