Problem $5-5($Algo$)$ Break$-$even analysis $[$LO$5-2]$

Eaton Tool Company has fixed costs of $$525,000,$ sells its units for $$106,$ and has variable costs of $$56$ per unit.

Compute the break$-$even point.

Ms$.$ Eaton comes up with a new plan to cut fixed costs to $$400,000.$ However, more labor will now be required, which will increase variable costs per unit to $$59.$ The sales price will remain at $$106.$ What is the new break$-$even point?

Note: Round your answer to the nearest whole number.

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

multiple choice

Profitability will be less

Profitability will be more