Question :
Chester has a fresh design for their product Cedar 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 existing price to customers. For simplicity:
- Use present labor costs of $4.14
- Suppose all period costs as reported on Chester's Income Statement will remain the same.
Evaluate how many units of product Cedar would need to be sold next round to break even on the product.
Select: 1
804 units.
1,005 units.
950 units.
1,306 units.
1,066 units.
1,355 units.