Chester has a new design for their product Cid next round that can reduce their material cost of producing units from $8.14 to $7.32. Chester passes on half of all cost savings by cutting the current price to customers. For simplicity: - Use current labor costs of $4.06
- Assume all period costs as reported on Chester's Income Statement (Annual Rpt Pg 2) will remain the same.
Determine how many units (000) of product Cid would need to be sold next round to break even on the product.
Sell Price $19.00
Labor Cost $4.06
Material Cost $8.14
Total Period 7,622
Select: 1
a. 1,000 units.
b. 1,121 units.
c. 1,374 units.
d. 1,057 units.
e. 846 units.
f. 1,161 units.