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.Homework 2: Ch 4-5 Seved Help Save & Exit Submit Check my work Eaton Tool Company has fixed costs of $315,000, sells its unit

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Answer #1

a. Break-even point = Fixed costs / Contribution margin per unit

Break-even point = $315,000 / ($76 - $41)

Break-even point = 9,000 units

b. New break-even point = New fixed costs / New contribution margin per unit

New break-even point = $250,000 / ($76 - $44)

New break-even point = 7,813 units

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