Question

Eaton tools has a Fixed Cost of 278,400 units are sold at $70 each Variable Cost is $38 per unita-Compute

Break Even Point in units?

b-Mr. Eaton has a new plan to cut fixed cost to 220,000mhowever more labor is needed will increase variable cost to $41 per unit sales price will remain at $70

What is the Break Even Point?

c- Under new plan what is likely to happen to profitability at very high volume levels (compare to old plan)

-profitability will be more

-profitability will be less

pick one to answer c

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