Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Chester has negotiated a new labor contract for the next round that will affect the cost for their product Cell. Labor costs will go from

Chester has negotiated a new labor contract for the next round that will affect the cost for their product Cell. Labor costs will go from $2.91 to $3.41 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 Cell would need to be sold next round to break even on the product?
Select: 1
1,361
1,417
1,478
1,789
image text in transcribed
image text in transcribed
Production Information Unit Primary Units Inven 2nd Auto Shift & mation Capacity Age Plmn Size Material Labor Contr. Over- Next Next Plant Segment Sold tory Revision Date Dec.31 MTBF Coord Coord Price Cost Cost Marg. time Round Round Utiliz Nano 1.442 89 6/30/2019 1.524000 11.8 4.8$37.25 $13.68 $9.57 37% 100% 5.0 758 198% 8/6/2019 1.426000 15.5 7.4 $39.50 $14.64 $9.57 39% 100% 5.0 774 198% Thrift 2327 10 6/20/2019 1.920000 7.7 12.3 $17.50 $7.88 $0.38 18% 100% 7.0 1,180 198% Core 2,141 929 8/16/2019 1.522000 10.7 11.5 $24.00$10.03 S797 22% 100% 6.0 1.550 198% Elite 1,443 90 Nano 1.722 60 11/5/2019 1.223000 13.2 4.8 $34.00 $13.66 $7.91 38% 100% 7.0 1,150 198% Bit Elite 1.323184 8/24/2019 1.925000 16.0 6.8$34.00 $14.56 $6.80 35% 63% 7.0 800 161 Nano 1,236 316 7/3/2019 1.323000 13.7 4.3 $37.00 $14.04 $7.20 40% 37% 7.0 1.150 136% Buzz Elite 1,502 412 7/25/2019 1.325000 15.8 6.5 $37.00$14.57 $7.49 38% 57% 7.0 1.300 156% 1.700 380 6/9/2020 3.7 17000 7.5 12.5 $1600 $6.80 $2.91 36% 40% 10.0 1,500 139% 6/9/2020 3.617000 7.7 12.3 $16.00 $6.96 $2.87 36% 34% 10.0 1,600 133% Core 1.496 435 12/16/2018 2.118000 10.6 8.8 S24.00 $9.72 $4.69 37% 86% 8.0 1,050 184% 1,664 465 12/18/2018 2.120000 11.3 9.3 $24.00$10.36 $4.61 34% 72% 80 1.300170% City Thrift 1,777 352

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting

Authors: M.E. Thukaram Rao

3rd Edition

8122433820, 978-8122433821

More Books

Students also viewed these Accounting questions