Digby has a new design for their product Drat next round that can reduce their material cost of producing units from $8.14 to $7.32. Digby passes on half of all cost savings by cutting the current price to customers. For simplicity:
- Use current labor costs of $3.74
- Assume all period costs as reported on Digby's Income Statement (Annual Rpt Pg 2) will remain the same.
Determine how many units (000) of product Drat would need to be sold next round to break even on the product.