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Eaton Tool Company has fixed costs of $340,400, sells its units for $80, and has variable costs of $43 per unit.

a. Compute the break-even point.

b. Ms. Eaton comes up with a new plan to cut fixed costs to $270,000. However, more labor will now be required, which will increase variable costs per unit to $46. The sales price will remain at $80. What is the new break-even point? (Round your answer to the nearest whole number.)

Financial Management, Finance

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