Question:
Chester has a new design for their product Cedar next round that will 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 $4.14
- Consider all period costs as reported on Chester's Income Statement (Annual Rpt Pg 2) will get the same.
Evaluate how many units (000) 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.