7.3 Break-Even Analysis Exercise 7-2 Century Planes Ltd supplies the following information for the production of 15 000tools. 45 000 Direct materials Direct labour 37 500 Other direct expenses 15 000 Variable selling expenses 30 000 Fixed expenses total $74 000. The tools sell for $16 each. Century Planes Ltd has received the following quotations for the supply of the tools: North Island Tool Co. $6 000 per 1000 tools South Island Tool Co. $6 800 per 1000 tools Required ... (1) Calculate the effect on profit and the break-even point of the quotations of (a) North Island Tool Co. :(b) South Island Tool Co.. If either was award the contract to supply the tools to Century Planes Ltd