Healthy Foods Inc. sells 60-pound bags of grapes to the military for $15 a bag. The fixed costs of this operation are $99,000, while the variable costs of grapes are $.15 per pound.

a. What is the break-even point in bags?

b. Calculate the profit or loss (EBIT) on 12,000 bags and on 31,000 bags.

Bags	Profit/Loss	Amount
12,000
31,000

c. What is the degree of operating leverage at 20,000 bags and at 31,000 bags? (Round your answers to 2 decimal places.)

Bags	Degree of Operating Leverage
20,000
31,000

d. If Healthy Foods has an annual interest expense of $7,000, calculate the degree of financial leverage at both 20,000 and 31,000 bags. (Round your answers to 2 decimal places.)

Bags	Degree of Financial Leverage
20,000
31,000

e. What is the degree of combined leverage at both 20,000 and 31,000 bags? (Round your answers to 2 decimal places.)

Bags	Degree of Combined Leverage
20,000
31,000