Baldwins product Bit has material costs that are rising from $6.82 to $7.82. Assume that period costs and other labor costs remain unchanged. If Baldwin decides to absorb the cost and not pass any on to its customers in the form of raised prices how many units of product Bit would need to be sold next round to break even on the product?
Select: 1 |
| 1,016 | | 853 | | 968 | | 989 | |
Annual Report Baldwin C59559 2019 Income Statement (Product Name:) Bit Bolt Buzz Brat Baker Bead $15,974 $35,040 $35,866 $31,813 $32,992 $23,167 ales Variable Costs: $1,781 $7,403 $8,018 $5,517 $8,787 $4,651 Direct Labor $5,674 $15,572 $14,843 $11,726 $14,075 $9,782 Direct Material $244 $260 $365 $252 $110 $0 Inventory Carry $7,699 $23,235 $23,226 $17,495 $22,971 $14,433 Total Variable Contribution $8,275 $11,805 $12,640 $14,318 $10,021 $8,734 Margin Period Costs: $3,833 $4,600 $2,040 $1,927 $2,635 $2,475 Depreciation SG&A: R&D $983 $0 $973 $973 $995 $114 $1,140 $1,140 $1,140 $1,140 $1,140 $1,140 Promotions $1,000 $1,000 $1,900 $2,200 Sales $900 $900 Admin $453 $207 $464 $412 $427 $300 Total Period $7,163 $7,193 $6,517 $6,652 $6,097 $4,928 $1,112 $4,611 $6,123 $7,667 $3,924 $3,806 Net Margin Na $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Round: 3 Dec. 31, 2019 2019 Common Na Total Size $0 $174,853 100.0% $0 $36,157 20.7% $0 $71,672 41.0% $0 $1,231 0.7% $0 $109,059 62.4% $0 $65,794 37.6% $0 $17,509 10.0% $0 $4,039 2.3% $0 $6,840 3.9% $0 $7,900 4.5% $0 $2,263 1.3% $0 $38,551 22.0% $0 $27,243 15.6% Annual Report Baldwin C59559 2019 Income Statement (Product Name:) Bit Bolt Buzz Brat Baker Bead $15,974 $35,040 $35,866 $31,813 $32,992 $23,167 ales Variable Costs: $1,781 $7,403 $8,018 $5,517 $8,787 $4,651 Direct Labor $5,674 $15,572 $14,843 $11,726 $14,075 $9,782 Direct Material $244 $260 $365 $252 $110 $0 Inventory Carry $7,699 $23,235 $23,226 $17,495 $22,971 $14,433 Total Variable Contribution $8,275 $11,805 $12,640 $14,318 $10,021 $8,734 Margin Period Costs: $3,833 $4,600 $2,040 $1,927 $2,635 $2,475 Depreciation SG&A: R&D $983 $0 $973 $973 $995 $114 $1,140 $1,140 $1,140 $1,140 $1,140 $1,140 Promotions $1,000 $1,000 $1,900 $2,200 Sales $900 $900 Admin $453 $207 $464 $412 $427 $300 Total Period $7,163 $7,193 $6,517 $6,652 $6,097 $4,928 $1,112 $4,611 $6,123 $7,667 $3,924 $3,806 Net Margin Na $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Round: 3 Dec. 31, 2019 2019 Common Na Total Size $0 $174,853 100.0% $0 $36,157 20.7% $0 $71,672 41.0% $0 $1,231 0.7% $0 $109,059 62.4% $0 $65,794 37.6% $0 $17,509 10.0% $0 $4,039 2.3% $0 $6,840 3.9% $0 $7,900 4.5% $0 $2,263 1.3% $0 $38,551 22.0% $0 $27,243 15.6%