Healthy Foods Inc. sells 50-pound bags of grapes to the military for $25 a bag. The fixed costs of this operation are $95,000, while the variable costs of grapes are $0.25 per pound.

a. What is the break-even point in bags? (Round your answer to 2 decimal places.)

break-even point ___________bags

b. Calculate the profit or loss (EBIT) on 10,000 bags and on 31,000 bags.

bags porfit/loss amount

10,000 ________ _________

31,000 ________ _________

c. What is the degree of operating leverage at 22,000 bags and at 31,000 bags? (Round your answers to 2 decimal places.)

bags degree of operating leverage

22,000 ____________

31,000 ____________

d. If Healthy Foods has an annual interest expense of $8,000, calculate the degree of financial leverage at both 22,000 and 31,000 bags. (Round your answers to 2 decimal places.)

bags degree of financial leverage

22,000 ______________

31,000 ______________

e. What is the degree of combined leverage at both 22,000 and 31,000 bags? (Round your answers to 2 decimal places.)

bags degree of combined leverage

22,000 ___________

31,000 ___________