Baldwin has negotiated a new labor contract for the next round that will affect the cost for their product Baker. Labor costs will go from $2.04 to $2.54 per unit. In addition, their material costs have fallen from $6.82 to $5.82. Assume all period costs as reported on Baldwin's Income Statement remain the same. If Baldwin were to pass on half the new costs of labor and half the savings in materials to customers by adjusting the price of their product, how many units of product Baker would need to be sold next round to break even on the product?

Select: 1

	1,241
	896
	870
	777

2020 Income Statement Bat S20,045 S39,010 S39,432 S30,506 S34,807 S23,167 2020 Common Total (Product Name:) Bead Bid Bold Buddy Na Na $0 $186,967 100.0% Variable Costs Direct Labor Direct Material Inventory Carry Total Variable 52,405 8,643 9,70 55,822 59,470 54,683 S0 S0 56,988 17,255 S16,265 1,215 S14,84 59,782 59,920 S26,312 526,71717,912 S24,451 S14,465 S10,125 12,698 S12,715 12,594 S10,35 58,703 $40,728 $76,352 52,697 $119,777 21.8% 40.8% 1.4% 04.1% S529 S414 S745 878 S133 $0 Contribution Margin S0 $67,190 35.9 Period Costs 53,833 4,560 $2,362 2,251 52,657 52,439 5114 51,140 1,140 1,140 ,140 51,140 51,140 S900 S398 57,300 7,370 57,052 57,088 5,290 54,991 $18,103 54,039 56.840 $7.900 53,209 $40,090 9.7% 2.2% 3.7% 4.2% 1.7% 21.4% SG&A: R&D S983 S973 S973 995 Promotions 50 51,000 344 51,000 S670 51,900 S677 52,200 524 900 S597 Total Period S0 Net Margin 52,824 5,329 55,663 5,508 4,065 53,712 $27,100 14.5%