Eaton tool company has fixed costs of 393600 sells its


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?

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Finance Basics: Eaton tool company has fixed costs of 393600 sells its
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