However more labor will now be required which will increase


Eaton Tool Company has fixed costs of $200,000, sells its units for $56, and has variable costs of $31 per unit: Ms. Eaton comes up with a new plan to cut fixed costs to $150,000. However, more labor will now be required, which will increase variable costs per unit to $34. The sales price will remain at $56.

What is the new Break-Even Point?

 

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Finance Basics: However more labor will now be required which will increase
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