Valley Peat Ltd$.$ sells peat moss for $$10$ per bag. Variable costs are $$7\mathrm{.}50$ per bag and annual fixed costs are $$100,000.$

a$.$ How many bags of peat must be sold in a year to break even?

Number of bags

$40000$

bags per year

b$.$ What will be the net income for a year in which $60,000$ bags of peat are sold?

Net income $

$50000$

c$.$ How many bags must be sold for a net income of $$60,000$ in a year?

Number of bags

$64000$

bags per year

d$.$ What annual sales in terms of bags and in terms of dollars would produce a loss of $$10,000?$

Annual sales in terms of bags

$36000$

bags per year

Annual sales in terms of dollars $

per year

e$.$ How much do the break$-$even unit sales and break$-$even revenue increase per $$1000$ increase in annual fixed costs?

Break$-$even unit sales increases by

units per year

Break$-$even revenue increases by $

per year