Eaton Tool Company has fixed costs of $$494,400,$ sells its units for $$102,$ and has variable costs of $$54$ per unit.

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

Break$-$even point $$

b$.$ Ms$.$ Eaton comes up with a new plan to cut fixed costs to $$380,000.$ However, more labor will now be required, which will increase variable costs per unit to $$57.$ The sales price will remain at $$102.$ What is the new break$-$even point?

Note: Round your answer to the nearest whole number.

New break$-$even point

units

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