7. A business has the following financial information for the period: A. Determine the degree of operating leverage (be sure to show and label your work). B. Determine the degree of financial leverage (be sure to show and label your work). C. Determine the breakeven point (be sure to show and label your work). 8. A business has a beginning inventory balance on January 1 of 12,000 units and desires an ending balance of 20% of the next month's sales. If sales are expected to be 17,000 for January and 20,000 for February, what amount of units does Samuelson have to produce during the month of January (be sure to show and label your work)? 9. Under nomal conditions (70\% probability), Plan A will produce a $20,000 higher return than Plan B. Under tight money conditions (30\% probability), Plan A will produce $100,000 less than Plan B. Calculate the expected difference in the value of return (be sure to show and label your work). 10. A business has $4,000,000 in assets. It has decided to finance 30% with long-term financing ( 9% rate) and 70% with short-term financing (7\%) rate. Assuming a 40% tax rate, what will its annual after-tax interest costs be (be sure to show and label your work)