Eaton Tool Company has fixed costs of $$255,000,$ sells its units for $$66,$ and has variable costs of $$36$ per unit.

Compute the break$-$even point.

Ms$.$ Eaton comes up with a new plan to cut fixed costs to $$200,000.$ However, more labor will now be required, which will increase variable costs per unit to $$39.$ The sales price will remain at $$66.$ What is the new break$-$even point?

Under the new plan, what is likely to happen to profitability at very high volume levels $($compared to the old plan$)?$