Question: Valley Peat Ltd. sells peat moss for $10 per bag. Variable costs are $7.50 per bag and annual fixed costs are $100,000. a. How many

Valley Peat Ltd. sells peat moss for $10 per bag. Variable costs are $7.50 per bag and annual fixed costs are $100,000.
a. How many bags of peat must be sold per year to break even?
b. What will be the net income for a year in which 60,000 bags of peat are sold?
c. How many bags must be sold for a net income of $60,000 in a year?
d. What volume of sales would produce a loss of $10,000 in a year?
Use the graphical approach to CVP analysis to solve the problem.

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