Eaton tool company has fixed costs of $380,000, sells its units for $86, and has variable costs of $46 per unit.
a. compute the break-even point.
b. ms. eaton comes up with a new plan to cut fixed costs to $300,000. however, more labor will now be required, which will increase variable costs per unit to $49. the sales price will remain at $86. what is the new break-even point? (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 problem)?

This problem has been solved! see the answerwhich of the following statements is correct? the consumer price index is a measure of the overall level of prices, whereas the gdp deflator is not a measure of the overall level of prices. if, in the year 2011, the consumer price index has a value of 123.50, then the inflation rate for 2011 must be 23.50 percent. compared to the gdp deflator, the consumer price index is the more common gauge of inflation. the consumer price index and the gdp deflator reflect the goods and services bought by consumers equally well.