Chester has a new design for their product Cake next round that can reduce their material cost of producing units from $8.14 to $7.32. Chester passes on half of all cost savings by cutting the current price to customers. For simplicity: - Use current labor costs of $4.21 - Assume all period costs as reported on Chester's Income Statement (Annual Rpt Pg 2) will remain the same. Determine how many units (000) of product Cake would need to be sold next round to break even on the product.

Select : 1

A. 1,070 units.

B. 856 units.

C. 1,136 units.

D. 1,391 units.

E. 865 units.

F. 1,012 units.

2024 Income Statement Product Name Sales Variable Costs