Chester has negotiated a new labor contract for the next round that will affect the cost for their product Cake. Labor costs will go from $2.96 to $3.46 per unit. Assume all period and variable costs as reported on Chester's Income Statement remain the same. If Chester were to pass on half the new labor costs to their customers, how many units of product Cake would need to be sold next round to break even on the product?

Name-Cake

Units sold-1,933

unit inventory-196

revision date-6/10/2023

age-3.7 MTBF-17000

Pfmn-8.1 Size-11.9

Price-$16.00

Material cost-$6.80

Labor cost-$2.96

Contr. Margin-37%

2nd Shift & Overtime-48%

Automation Next Round-10.0

Capacity Next Round-1,550

Plant Utiliz-147%

Income Statement for Chester

Sales $140,464

Variable Costs (Labor, Material, Carry) $89,651

Contribution Margin $50,813

Depreciation $16,680

SGA (R&D, Promo, Sales, Admin) $13,432

Other (Fees, Writeoffs, TQM, Bonuses $6,715

EBIT $13,985

Interest (Short term, Long term) $16,501

Taxes ($881)

Profit Sharing $0

Net Profit (1636)