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Tabitha L DillayBUS 3710-A3Problems (Chapter 5)Due: Friday2.)The Hartnett Corporation manufactures baseball bats with Pudge Rodriguez’s autograph stamped on them. Each bat sells for $35and has a variable cost of $22. There are $97,500 in fixed costs involved in the production process.a. Compute the break-even point in units BE(Break-Even) = 97500 / 35 - 22 = 7500 unitsb. Find the sales (in units) needed to earn a profit of $262,500. 97500 + 262500 / 35 - 22 = 360000 / 13 = 27693 Units5.)Eaton Tool Company has fixed costs of $255,00, sells it’s units for $66, and has variable costs of $36 per unit.a. Compute the break-even pointBE = ($255,000) / ($66 - $36) = 8,500. The Break-even point is 8,500 units.b. Ms. Eaton comes up with a new plan to cut fixed costs to $200,000. However, more labor will now be required, which will increase the variable costs per unit to $39. The sales price will remain at $66. What is the new break-even point?BE = ($200,000) / ($66 - $39) = 7,407. The Break-even point is 7,407 units.c. Under the new plan, what is likely to happen to profitability at very high-volume levels (compared to the old plan)?