Healthy Foods, Inc., sells 50-pound bags of grapes to the military for $10 a bag. What is the degree of combined leverage at both sales levels? Chapter 5 page 144 problem 13 in Foundations of Financial Management.

This is what I have so far can you tell me if this is correct?
For 20,000 bags: You take the DOL, which is 5, and the DFL, which is 2, 5x2 = 10
For 25,000 bags: You take the DOL 2.78 x the DFL 1.29 = 3.57
Degree of combined leverage = DOL x DFL = 3.57
t?

To calculate the degree of combined leverage (DCL), you need to multiply the degree of operating leverage (DOL) with the degree of financial leverage (DFL).

DOL measures the percentage change in operating income for a given percentage change in sales revenue. DFL measures the percentage change in net income for a given percentage change in operating income.

To determine the DOL, you can use the given formula on page 144:

DOL = (Q × P - VC) / (Q × P - VC - FC)

Where:
Q = Quantity sold (bags of grapes)
P = Selling price per bag
VC = Variable cost per bag
FC = Fixed costs

From the information given, we know that the selling price per bag is $10, and there are no variable costs provided, so we can assume they are $0. Additionally, no fixed costs are mentioned. Without that information, it would be difficult to calculate the DOL.

Similarly, to calculate the DFL, you need the interest expense and the income before taxes. However, the problem does not provide information on these figures, making it impossible to determine the DFL.

Without the necessary data, it is not possible to accurately calculate the DCL for both sales levels. You may want to review the problem to see if there are any missing details or look for additional information in the textbook or accompanying materials.