Eaton Tool Company has fixed costs of $315,000, sells its units for $76, and has variable costs of $41 per unit. a. Compute the break-even point. Answer is complete but not entirely correct. 8,334 X units Break-even point b. Ms. Eaton comes up with a new plan to cut fixed costs to $250,000. However, more labor will now be required, which will increas variable costs per unit to $44. The sales price will remain at $76. What is the new break-even point? (Round your answer to the nearest whole number.) Answer is complete but not entirely correct. 5,882 units New break-even point
Eaton Tool Company has fixed costs of $315,000, sells its units for $76, and has variable costs of $41 per unit. a. Compute the break-even point. Answer is complete but not entirely correct. 8,334 X units Break-even point b. Ms. Eaton comes up with a new plan to cut fixed costs to $250,000. However, more labor will now be required, which will increas variable costs per unit to $44. The sales price will remain at $76. What is the new break-even point? (Round your answer to the nearest whole number.) Answer is complete but not entirely correct. 5,882 units New break-even point
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Eaton Tool Company has fixed costs of $315,000, sells its units for $76, and has variable costs of $41 per unit.
a. Compute the break-even point.
> Answer is complete but not entirely correct.
8,334 units
Break-even point
b. Ms. Eaton comes up with a new plan to cut fixed costs to $250,000. However, more labor will now be required, which will increase
variable costs per unit to $44. The sales price will remain at $76. What is the new break-even point? (Round your answer to the
nearest whole number.)
Answer is complete but not entirely correct.
5,882
units
New break-even point
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