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Baldwin has negotiated a new labor contract for the next round that will affect the cost for their product, Bead. Labor costs will go from
Baldwin has negotiated a new labor contract for the next round that will affect the cost for their product, Bead. Labor costs will go from $3.02 to $3.52 per unit. In addition, their material costs have fallen from $6.80 to $5.80. If Baldwin were to pass on half the new cost of labor and half the savings in materials to customers by adjusting the price of their product, how many units of product, Bead, would need to be sold next round to break even on the product?
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