Eaton Tool Company has fixed costs of $$302,600,$ sells its units for $$74,$ and has varlable costs of $$40$ per unit.

o$.$ Compute the break$-$even point.

Break$-$even point units

b$.$ Ms$.$ Eaton comes up with a new plan to cut fixed costs to $$240,000.$ However, more labor will now be required, which will increase variable costs per unit to $$43.$ The sales price will remain at $$74.$ What is the new break$-$even point? Note: Round your answer to the nearest whole number.c$.$ Under the new plan, what is likely to happen to profitability at very high volume levels $($compared to the old plan$)?$Profitability will be lessProfitability will be more