Healthy Foods Inc. sells 50-pound bags of grapes to the military for $10 a bag. The fixed costs of this operation are $80,000, while the variable costs of grapes are $.10 per pound.

a.	What is the break-even point in bags? (Round your answer to the nearest whole number.)

Break-even point

bags

b.	Calculate the profit or loss (EBIT) on 12,000 bags and on 25,000 bags. (Input all amounts as positive values. Round your answers to the nearest whole number.)

Bags	Profit/Loss	Amount
12,000	(Click to select)ProfitLoss	$
25,000	(Click to select)ProfitLoss	$

c.	What is the degree of operating leverage at 20,000 bags and at 25,000 bags? (Round your answers to 2 decimal places.)

Bags	Degree of Operating Leverage
20,000
25,000

d.	If Healthy Foods has an annual interest expense of $10,000, calculate the degree of financial leverage at both 20,000 and 25,000 bags. (Round your answers to 2 decimal places.)

Bags	Degree of Financial Leverage
20,000
25,000

e.	What is the degree of combined leverage at both 20,000 and 25,000 bags? (Round your answers to 2 decimal places.)

Bags	Degree of Combined Leverage
20,000
25,000