Question: Eaton Tool Company has fixed costs of $393.600, sells its units for $88, and has variable costs of s47 per unit.
a. Compute the break-even point. Break-even point units
b. Ms. Eaton comes up with a new plan to cut fixed costs to $310,000. However, more labor will now be required. which will increase variable costs per unit to $50. The sales price will remain at $88. What is the new break-even point?