Question: rewrite in paragraph form: First, let's calculate the break-even point for the existing process: Calculate the total labor cost: 5 employees * $24/hour = $120/hour

rewrite in paragraph form: First, let's calculate the break-even point for the existing process: Calculate the total labor cost: 5 employees * $24/hour = $120/hour Calculate the overhead cost: $120/hour * 1.6 = $192/hour Calculate the total fixed costs: Labor cost + Overhead cost = $120/hour + $192/hour = $312/hour Calculate the variable cost per unit: Material cost per fitting = $32 Calculate the contribution margin per unit: Sale price per unit - Variable cost per unit = $61 - $32 = $29 Calculate the break-even point: Fixed costs / Contribution margin per unit = $312/hour / $29 = 10.76 units/hour Now, let's calculate the break-even point for the new process: Calculate the total labor cost: 6 employees * $24/hour = $144/hour Calculate the overhead cost: $144/hour * 1.6 = $230.4/hour Calculate the total fixed costs: Labor cost + Overhead cost = $144/hour + $230.4/hour = $374.4/hour Calculate the variable cost per unit: Reduced material cost per fitting = $20 Calculate the contribution margin per unit: Sale price per unit - Variable cost per unit = $61 - $20 = $41 Calculate the break-even point: Fixed costs / Contribution margin per unit = $374.4/hour / $41 = 9.13 units/hour So, the break-even point for the existing process is approximately 11 units per hour, and for the new process, it is approximately 9 units per hour

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