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.
A) 371 units
B) 386 units
C) 357 units
D) 297 units
E) 302 units
GXM110924_028 Dec. 31 2023 THE GLOBE THEBE Page 3 Round 0 Financial Summary Financial statements provide insight into the company's activities for the year from the financial perspective, presented according to accounting rules. Andrews Baldwin Chester Digby $5,931 $3,583 $7.969 (S281) $7,280 $5.299 $0 $4,725 $0 $5,891 SO $279 $4.635 ($1,902) $14,241 $1,132 $2,304 ($2,355) $9,390 (56) ($1.932) ($128) $13,183 $103 ($1,963) $217 $3,966 Cash Flow Statement Survey Cash Flows From Operating Activities Net Income (Loss) Adjustment For Non Cash Items Depreciation Extraordinary Gains/Losses/Writeoff Changes in current assets and liabilities Accounts Payable Inventory Accounts Receivable Net Cash From Operations Cash Flows From Investing Activities Plant Improvements (Net) Cash Flows From Financing Activities Dividends Paid Sales of Common Stock Purchase of Common Stock Cash from Long Term Debt Issued Early Retirement of Long Term Debt Retirement of Current Debt Cash From Current Debt Borrowing Cash From Emergency Loan Net Cash From Financing Activities Effect of Exchange Rate Net Change In Cash Position ($16,600) ($7,080) ($29,200) ($15.000) $0 SO $0 $2,002 $1,822 $869 $3,000 $0 $4,600 SO $0 SO $7,516 $0 SO $6,166 $0 ($19,789) S13,726 $14,302 $0 ($11,651) $16,471 ($4,650) ($6,441) $13,198 $0 $2.950 ($927) ($336) $2,105 (S482) $3.932 $20,944 ($356) $4.572 $15.143 (5342) $3,767 Balance Sheet Survey Cash Accounts Receivable Inventory Total Current Assets Plant and Equipment Accumulated Depreciation Total Fixed Assets Total Assets Account Payable Current Debt Long Term Debt Total Liabilities Common Stock Retained Earnings Total Equity Total Llabilitles Owners Equity Andrews $13,544 $12,485 $4.559 $30,588 $79,480 ($28,728) $50,752 $81,340 $7.330 $4,400 $21,200 $32.930 $13,308 $35, 102 $48.410 $81,340 Baldwin $16,477 $8,901 S10,803 S36,181 $70,880 ($27,212) S43,668 S79,849 $4,795 $17,740 S19,038 S41,572 $7,810 530,466 $38,276 S79,849 Chester $22,970 $8.272 $10,304 $41,546 $109,200 ($32,027) $77,173 S118,719 $4,564 $20,871 $36,324 $61,759 $19,889 $37,071 $56,960 S118,719 Digby $14,041 $6,002 $7,166 $27,209 $88,360 ($29,917) $58,443 $95.652 $3,366 $17,598 $27,185 $48.149 $10,142 $27.362 $37,504 $85,652 Income Statement Survey Sales Variable Costs(Labor Material.Carry. Shipping) Depreciation SG&A (R&D/Promo/Sales/Admin) Other (Fees/Writeoffs/Bonuses) EBIT Interest (Short Term / Long Term) Taxes Profit Sharing Net Profit Andrews S151,904 S102,713 $5.299 $26,839 $380 $16,674 $3.060 $7,561 $121 $5,931 Baldwin $108.291 S65,178 $4,725 $25,657 $408 S12,323 $4,555 $4,089 $96 $3,583 Chester $100,644 $58,441 $7,280 $15,370 $806 $18,747 $6.885 $3,750 S163 $7.969 Digby $73,027 $44.007 $5,891 $15,586 $419 $7,124 $5,364 $2,005 $37 (S281)
