Chester has negotiated a new labor contract for the next round that will affect the cost for their product Crimp. Labor costs will go from $2.83 to $3.43 per unit. Assume all period and other variable costs remain the same. If Chester were to absorb the new labor costs without passing them on in the form of higher prices, how many units of product Crimp would need to be sold next round to break even on the product? Select: 1

a. 1,783

b. 1,333

c. 1,270

d. 1,402

Unit Primary Units Inven Age Pfmn Size Name Segment Sold tory Revision Date Dec.31 MTBF Coord Coord 2nd Auto Shift & mation Capacity Material Labor Contr. Over Next Next Plant Cost Cost Marg. time Round Round Utiliz. Price Acre Adam Ark Able Ark2 Able2 Acre2 Nano Elite Thrift Core Thrift Core 881 832 1,582 1,753 515 396 0 0 0 200 0 0 0 0 6/22/2022 6/17/2022 5/5/2022 6/16/2022 6/14/2022 2/6/2022 4/3/2023 1.6 24000 1.6 26000 2.0 17500 1.7 22000 1.2 16000 0.9 17000 0 11.4 13.8 6.5 9.2 6.5 8.8 0.0 6.0 $37.50 $12.82 $9.88 8.8 $40.50 $13.22 $9.70 13.3 $17.79 $6.42 $8.05 10.8 $26.50 $9.58 $9.46 13.4 $17.00 $5.97 $9.74 11.2 $26.50 $7.92 $10.02 0.0 $0.00 $0.00 $0.00 39% 43% 17% 28% 8% 31% 0% 7% 39 59% 47% 4% 11% 0% 4.0 4.0 6.0 5.0 4.0 4.0 4.0 828 106% 814 102% 1,330 158% 1,200 146% 500 103% 400 99% 300 0.0 0% Brat Baker Bead Bid Nano Elite Nano Elite 1,782 1,504 1,528 1,706 0 161 387 455 11/5/2022 8/24/2022 7/3/2022 7/25/2022 1.2 23000 1.9 25000 1.3 23000 1.3 25000 12.7 15.5 13.2 15.3 5.3 $34.00 $13.66 $7.91 7.3 $34.00 $14.56 $6.98 4.8 $37.00 $14.04 $7.74 7.0 $37.00 $14.57 $7.80 39% 100% 36% 82% 39% 80% 38% 86% 7.0 7.0 7.0 7.0 1,150 198% 850 181% 1,300 178% 1,400 185% Crimp Cake City Thrift Thrift Core Core 1,694 1,775 1,579 1,751 156 131 236 288 6/10/2023 6/10/2023 12/16/2021 12/18/2021 3.7 17000 3.6 17000 2.1 18000 2.1 20000 7.0 7.2 10.1 10.8 13.0 $16.00 $6.80 $2.83 12.8 $16.00 $6.96 $2.75 9.3 $24.00 $9.72 $4.49 9.8 $24.00 $10.36 $4.41 37% 37% 38% 36% 30% 20% 57% 48% 10.0 10.0 8.0 8.0 1,350 128% 1,500 119% 1,100 156% 1,350 147% cid Drat Daze Dell Duck Dot Dune Thrift Core Nano Elite Core Core 816 1,714 1.440 940 1,484 1,022 225 158 283 330 51 17 12/20/2022 12/6/2020 12/17/2022 12/17/2022 12/25/2022 2/10/2022 2.2 14000 3.1 16000 1.0 18000 1.0 20000 0.9 16000 0.9 16000 7.7 8.6 12.1 15.2 10.0 9.7 12.3 $17.00 $6.82 $1.80 11.4 $19.00 $8.14 $3.81 5.2 $30.00 $12.74 $7.45 7.7 $36.00 $13.59 $6.97 9.9 $21.00 $9.31 $5.56 10.3 $22.00 $9.03 $4.46 52% 0% 34% 13% 32% 100% 42% 50% 31% 49% 37% 97% 10.0 10.0 7.0 7.0 8.0 8.0 1,250 67% 1,500 112% 1,049 198% 949 149% 1,040 148% 1,039 173% (Product Name:) Sales Crimp $27,101 Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable $4.900 $11,988 $187 $17,075 Contribution Margin $10.026 Period Costs: Depreciation SG&A: R&D Promotions Sales Admin Total Period $4,140 $1,000 $1,250 $1,400 $302 $8,092 Net Margin $1,934 Unit Primary Units Inven Age Pfmn Size Name Segment Sold tory Revision Date Dec.31 MTBF Coord Coord 2nd Auto Shift & mation Capacity Material Labor Contr. Over Next Next Plant Cost Cost Marg. time Round Round Utiliz. Price Acre Adam Ark Able Ark2 Able2 Acre2 Nano Elite Thrift Core Thrift Core 881 832 1,582 1,753 515 396 0 0 0 200 0 0 0 0 6/22/2022 6/17/2022 5/5/2022 6/16/2022 6/14/2022 2/6/2022 4/3/2023 1.6 24000 1.6 26000 2.0 17500 1.7 22000 1.2 16000 0.9 17000 0 11.4 13.8 6.5 9.2 6.5 8.8 0.0 6.0 $37.50 $12.82 $9.88 8.8 $40.50 $13.22 $9.70 13.3 $17.79 $6.42 $8.05 10.8 $26.50 $9.58 $9.46 13.4 $17.00 $5.97 $9.74 11.2 $26.50 $7.92 $10.02 0.0 $0.00 $0.00 $0.00 39% 43% 17% 28% 8% 31% 0% 7% 39 59% 47% 4% 11% 0% 4.0 4.0 6.0 5.0 4.0 4.0 4.0 828 106% 814 102% 1,330 158% 1,200 146% 500 103% 400 99% 300 0.0 0% Brat Baker Bead Bid Nano Elite Nano Elite 1,782 1,504 1,528 1,706 0 161 387 455 11/5/2022 8/24/2022 7/3/2022 7/25/2022 1.2 23000 1.9 25000 1.3 23000 1.3 25000 12.7 15.5 13.2 15.3 5.3 $34.00 $13.66 $7.91 7.3 $34.00 $14.56 $6.98 4.8 $37.00 $14.04 $7.74 7.0 $37.00 $14.57 $7.80 39% 100% 36% 82% 39% 80% 38% 86% 7.0 7.0 7.0 7.0 1,150 198% 850 181% 1,300 178% 1,400 185% Crimp Cake City Thrift Thrift Core Core 1,694 1,775 1,579 1,751 156 131 236 288 6/10/2023 6/10/2023 12/16/2021 12/18/2021 3.7 17000 3.6 17000 2.1 18000 2.1 20000 7.0 7.2 10.1 10.8 13.0 $16.00 $6.80 $2.83 12.8 $16.00 $6.96 $2.75 9.3 $24.00 $9.72 $4.49 9.8 $24.00 $10.36 $4.41 37% 37% 38% 36% 30% 20% 57% 48% 10.0 10.0 8.0 8.0 1,350 128% 1,500 119% 1,100 156% 1,350 147% cid Drat Daze Dell Duck Dot Dune Thrift Core Nano Elite Core Core 816 1,714 1.440 940 1,484 1,022 225 158 283 330 51 17 12/20/2022 12/6/2020 12/17/2022 12/17/2022 12/25/2022 2/10/2022 2.2 14000 3.1 16000 1.0 18000 1.0 20000 0.9 16000 0.9 16000 7.7 8.6 12.1 15.2 10.0 9.7 12.3 $17.00 $6.82 $1.80 11.4 $19.00 $8.14 $3.81 5.2 $30.00 $12.74 $7.45 7.7 $36.00 $13.59 $6.97 9.9 $21.00 $9.31 $5.56 10.3 $22.00 $9.03 $4.46 52% 0% 34% 13% 32% 100% 42% 50% 31% 49% 37% 97% 10.0 10.0 7.0 7.0 8.0 8.0 1,250 67% 1,500 112% 1,049 198% 949 149% 1,040 148% 1,039 173% (Product Name:) Sales Crimp $27,101 Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable $4.900 $11,988 $187 $17,075 Contribution Margin $10.026 Period Costs: Depreciation SG&A: R&D Promotions Sales Admin Total Period $4,140 $1,000 $1,250 $1,400 $302 $8,092 Net Margin $1,934