Chester has a new design for their product Cell 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 $4.18 - 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 Cell would need to be sold next round to break even on the product.

Please explain the answer: Select: 1

839 units.

1,176 units.

1,109 units.

1,441 units.

887 units.

1,048 units.

Page 1 Front Page Page 2 Stocks & Bonds Page 3 Financial Summary Page 4 Production Analysis Annual Report Andrews Page 5 Thrift Segment Analysis Page 6 Core Segment Analysis Page 7 Nano Segment Analysis Page 8 Elite Segment Analysis Page 9 Market Share Page 10 Perceptual Map Page 11 HR/TQM Report Annual Report Baldwin Annual Report Chester Annual Report Digby PRINT Top " Round: 3 Student: Meera Radha Dec. 31, 2018 Andrews Meera Radha Baldwin Chester Digby Meera Radha Selected Financial Statistics Andrews Baldwin Chester Digby 10.4% -1.4% 0.1% 12.5% 1.02 0.66 0.72 1.20 10.6% -0.9% 0.0% 15.0% 1.5 2.6 2.4 1.8 15.5% -2.4% 0.1% 26.4% $0 $0 $0 $0 Sales $145,194,998 $164,341,584 $186,806,383 $213,961,819 EBIT $27,745,661 $15,043,573 $18,323,551 $49,479,964 Profits $15,144,168 ($2,285,378) $118,507 $26,753,446 Cumulative Profit $26,332,446 $5,764,972 $10,139,940 $58,881,740 SG&A / Sales 13.2% 8.4% 11.5% 6.2% Contrib. Margin % 43.6% 33.3% 36.0% 37.8% ROS Asset Turnover ROA Leverage (Assets/Equity) ROE Emergency Loan COMP-XM INQUIRER Page 1 Top Round: 3 Stocks & Bonds Meera Radha December 31 , 2018 Stock Market Summary Shares MarketCap ($M) Book Value EPS Dividend Yield P/ $76.13 $21.83 2,051,119 $156 $47.58 $7.38 $0.00 0.0% 10 Baldwin $25.03 ($7.91) 3,458,688 $87 $27.12 ($0.66) $0.00 0.0% -37 Chester $37.01 ($5.40) 3,137,681 $116 $34.30 $0.04 $0.00 0.0% 954 Digby $114.87 $28.25 1,910,250 $219 $53.07 $14.01 $0.00 0.0% 8 Company Close Andrews Change Bond Market Summary Face $8,837,000 $7,072,000 $10,417,600 $14,665,611 $7,975,862 $9,473,322 $14,397,660 $34,636,089 $19,923,833 $8,637,463 $5,827,834 $15,600,633 $17,795,619 $38,242,615 $25,628,181 $2,505,867 $5,671,177 $1,376,019 $19,985,717 $12,078,676 Next Year's Prime Rate 9.00% Top Meera Radha Andrews Baldwin $15,144 ($2,285) $11,826 $18,507 $0 $0 $4,248 $1,225 ($17,729) ($14,048) ($2,047) $101 $11,442 $3,501 ($26,800) ($42,808) $0 $0 $0 $17,146 $0 $0 $0 $19,924 $0 $0 ($32,403) ($45,661) $21,190 $32,243 $0 $0 ($11,213) $23,651 ($26,571) ($15,656) Andrews Baldwin $2,154 $37,228 $11,934 $13,508 $26,938 $16,438 $41,026 $67,174 $177,392 $277,608 ($75,814) ($97,263) $101,578 $180,345 $142,605 $247,519 $7,923 $9,999 $21,190 $32,243 $15,909 $111,490 $45,022 $153,732 $12,081 $57,991 $85,502 $35,796 $97,583 $93,787 $142,605 $247,519 Andrews Baldwin $145,195 $164,342 $81,905 $109,576 $11,826 $18,507 $19,218 $13,861 $4,500 $7,353 $27,746 $15,044 $3,971 $18,560 $8,321 ($1,231) $309 $0 $15,144 ($2,285) Top Meera Radha Production Information MTBF Pfmn Coord Size Coord Price 26000 14.0 8.2 $39.00 20000 7.6 12.8 $25.50 22000 10.5 9.8 $30.50 21000 12.2 5.4 $39.00 17000 7.8 12.4 $16.00 17000 8.0 12.2 $16.00 18000 10.9 8.7 $24.00 20000 11.6 9.2 $24.00 14000 8.5 11.7 $17.00 16000 9.4 10.8 $19.00 18000 12.9 4.6 $30.00 20000 16.0 7.1 $36.00 16000 10.8 9.3 $21.00 16000 10.5 9.7 $22.00 23000 13.5 4.7 $34.00 25000 16.3 6.7 $34.00 23000 14.0 4.2 $37.00 25000 16.1 6.4 $37.00 Top Meera Radha Thrift Statistics Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry Next Year's Segment Growth Rate Expectations $14.00 - 26.00 MTBF 14000-20000 Pfmn 8.0 Size 12.2 Ideal Age = 3.0 Top Products in Thrift Segment List Price Size Coord 12.4 $16.00 12.2 $16.00 11.7 $17.00 10.8 $19.00 12.8 $25.50 9.3 $21.00 9.8 $30.50 9.7 $22.00 Top Meera Radha Core Statistics Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry Next Year's Segment Growth Rate Expectations $20.00 - 32.00 Ideal Age = 2.0 MTBF 16000-22000 Pfmn 11.0 Size 9.2 Top Products in Core Segment Size Coord List Price 9.2 $24.00 8.7 $24.00 9.3 $21.00 10.8 $19.00 9.7 $22.00 9.8 $30.50 12.2 $16.00 12.4 $16.00 12.8 $25.50 11.7 $17.00 4.7 $34.00 Top Meera Radha Nano Statistics Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry Next Year's Segment Growth Rate Expectations Pfmn 12.9 Size 4.4 $28.00 - 40.00 Ideal Age = 1.0 MTBF 18000-24000 Top Products in Nano Segment List Price Size Coord 4.7 $34.00 4.2 $37.00 4.6 $30.00 5.4 $39.00 8.2 $39.00 8.7 $24.00 6.4 $37.00 9.2 $24.00 7.1 $36.00 6.7 $34.00 Top Meera Radha Elite Statistics Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry Next Year's Segment Growth Rate Expectations Ideal Age = 0.0 $30.00 - 42.00 Pfmn 15.8 Size 7.3 MTBF 20000-26000 Top Products in Elite Segment Size Coord List Price 6.4 $37.00 6.7 $34.00 8.2 $39.00 7.1 $36.00 4.7 $34.00 5.4 $39.00 4.6 $30.00 4.2 $37.00 Top Meera Radha Core Nano 8,892 5,409 33.3% 20.3% 6.1% 0.4% 9.1% 16.4% 9.6% 22.5% 2.3% 3.5% 19.1% 1.9% 21.6% 1.6% 46.5% 3.6% 0.3% 14.5% 20.7% 1.2% 17.5% 11.5% 43.9% 21.9% 0.0% 26.6% 0.3% 23.4% 1.7% 0.0% 52.0% Core Nano 8,892 5,409 33.3% 20.3% 6.6% 0.4% 9.0% 16.3% 9.4% 22.9% 2.3% 3.5% 18.8% 1.9% 21.2% 1.6% 45.8% 3.5% 0.3% 14.2% 20.6% 1.2% 17.3% 12.9% 44.8% 21.8% 26.6% 0.3% 23.2% 1.7% 0.0% 51.8% Top Meera Radha Perceptual Map for All Segments Top Meera Radha HUMAN RESOURCES SUMMARY Baldwin Chester 571 657 571 657 357 434 214 223 0.0% 0.0% 8.0% 6.1% 126 136 0 0 $2,500 $5,000 40 80 114.0% 125.1% $440 $816 $0 $0 $457 $1,051 $897 $1,867 $29.56 $29.56 2,500 2,500 2.0% 2.0% 5.0% 5.0% TQM SUMMARY Baldwin Chester $1,250 $1,500 $1,250 $1,500 $0 $0 $1,500 $0 $0 $0 $0 $1,500 $0 $1,500 $0 $0 $750 $0 $750 $0 $5,500 $6,000 6.03% 1.41% 1.78% 0.05% 0.00% 0.00% 16.23% 43.11% 5.47% 0.45% PRINT Annual Report Top Andrews C59559 $41,026 $101,578 $142,605 $45,022 $97,583 $142,605 2018 $15,144 $11,826 $0 $4,248 ($17,729) ($2,047) $11,442 ($26,800) $0 $0 $0 $0 $0 ($11,213) ($11,213) ($26,571) $2,154 Top Andrews C59559 Axe Na $40,584 $0 $7,818 $0 $12,835 $0 $352 $0 $21,005 $0 $19,579 $0 $2,649 $0 $698 $0 $1,500 $0 $1,750 $0 $1,118 $0 $7,714 $0 $11,865 $0 PRINT Annual Report Top Baldwin C59559 $67,174 $180,345 $247,519 $153,732 $93,787 $247,519 2018 ($2,285) $18,507 $0 $1,225 ($14,048) $101 $3,501 ($42,808) $0 $17,146 $0 $19,924 $0 ($13,419) $23,651 ($15,656) $37,228 Top Baldwin C59559 Bolt Na $48,276 $0 $10,053 $0 $21,474 $0 $752 $0 $32,279 $0 $15,998 $0 $4,053 $0 $0 $0 $1,250 $0 $1,100 $0 $547 $0 $6,950 $0 $9,048 $0 4.5% 9.2% 2.5% 8.8% -0.7% 0.0% -1.4% PRINT Annual Report Top Chester C59559 $64,493 $196,276 $260,769 $153,134 $107,634 $260,769 2018 $119 $19,083 $0 $2,302 ($13,574) ($2,212) $5,717 ($60,278) $0 $22,179 $0 $25,628 $0 ($5,100) $42,707 ($11,853) $27,999 Top Chester C59559 Cozy Cute $30,369 $37,280 $5,525 $10,428 $11,181 $15,904 $646 $189 $17,353 $26,521 $13,016 $10,759 $2,364 $2,812 $973 $995 $1,140 $1,140 $2,200 $900 $424 $521 $7,102 $6,368 $5,915 $4,392 4.5% 9.8% 2.0% 7.7% 0.0% 0.0% 0.1% PRINT Annual Report Top Digby C59559 $70,950 $106,872 $177,822 $76,450 $101,370 $177,822 2018 $26,753 $11,184 $0 $1,432 ($10,850) ($2,049) $26,471 ($41,500) $0 $0 ($2,231) $12,079 $0 ($6,892) $2,956 ($12,074) $28,419 Top Digby C59559 Dome Na $56,797 $0 $11,563 $0 $22,453 $0 $1,242 $0 $35,259 $0 $21,539 $0 $3,287 $0 $571 $0 $1,350 $0 $900 $0 $419 $0 $6,526 $0 $15,013 $0 3.2% 23.1% 1.2% 2.3% 6.9% 0.3% 12.5%