6 Valley Peat Ltd sells peat moss for 10 per bag Variable costs are 7 50 per bag and annual fixed costs are 100 000 a How many bags of peat must be sold per year to break even b What will be the net income for a year in which 60 000 bags of peat are sold c How many bags must be sold for a net income of 25 000 in a year d What volume of sales would produce a loss of 50 000 in a year