Assume that your R&D team has a new design for their product Able next round that can reduce their material cost of producing units from $8.59 to $7.73. They pass on half of all cost savings by cutting the current price to customers. For simplicity:

• Use current labor cost of $8.37
• Assume all period costs as reported on Andrews Income Statement for Asia Pacific (Annual Report Page 5) will remain the same.
• Current price is equivalent to $30.00
• Shipping cost to Asia Pacific is $2.50 per unit

Determine how many units (000's) of product Able would need to be sold in Asia Pacific alone next round to break even on the product.

POSSIBLE ANSWERS:

A.) 371

B.) 297

C.) 386

D.) 357

E.) 302