Healthy Foods Inc. sells 60-pound bags of grapes to the military for $10 a bag. The fixed costs of this operation are $60,000, while the variable costs of grapes are $0.10 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 13,000 bags and on 41,000 bags.

Bags	Profit/Loss	Amount
13,000
41,000

c. What is the degree of operating leverage at 24,000 bags and at 41,000 bags?(Round your answers to 2 decimal places.)

Bags	Degree of Operating Leverage
24,000
41,000

d. If Healthy Foods has an annual interest expense of $12,000, calculate the degree of financial leverage at both 24,000 and 41,000 bags. (Round your answers to 2 decimal places.)

Bags	Degree of Financial Leverage
24,000
41,000

e. What is the degree of combined leverage at both 24,000 and 41,000 bags? (Round your answers to 2 decimal places.)

Bags	Degree of Combined Leverage
24,000
41,000