Eaton tool company has fixed costs of $210,600, sells its units for $58, and has variable costs of $32 per unit. a. compute the break-even point. b. ms. eaton comes up with a new plan to cut fixed costs to $160,000. however, more labor will now be required, which will increase variable costs per unit to $35. the sales price will remain at $58. what is the new break-even point?

A)Break-even point=  8100 units

B) Break-even point= 6957 units

Explanation:

Giving the following information:

Fixed costs of $210,600

Price per unit= $58

Variable costs of $32 per unit.

A)Break-even point= fixed costs/contribution margin= 210600/(58-32)= 8100 units

B) Fixed cost= 160000

Unitary variable cost= $35

Break-even point= 160000/(58-35)= 6957 units

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.

answer; realistic job preview;