Baldwin has a new design for their product Best next round that can reduce their material cost of producing units from $8.14 to $7.32. Baldwin passes on half of all cost savings by cutting the current price to customers. For simplicity: - Use current labor costs of $4.39 - Assume all period costs as reported on Baldwin's Income Statement (Annual Rpt Pg 2) will remain the same. Determine how many units (000) of product Best would need to be sold next round to break even on the product. Select: 1Save Answer 705 units. 1,168 units. 1,242 units. 1,518 units. 934 units. 1,102 units.

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http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?studentKey=1265422&simid=C59559&round=7&Report=CapCourier|AnnReport