(regardless of the production volume), and fixed costs mount to $180,000 per year. The firm pays a tax rate of 30%. The company's assets, valued at $625,000, are financed by 40% debt and 60% equity; with the latter in the form of 20,000 ordinary shares (no preference shares re issued). The firm pays annual interest of 8% on its debt financing. est i. Calculate the annual operating break-even level (volume) of bag sales. (1 mark) ii. Calculate the firm's earnings before interest and taxes (EBIT)