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 $2.99 to $3.59 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 Save Answer 2,344 1,504 1,585 1,432 2020 Income Statement (Product Name:) ales ariable Costs: 2020 Common Size $162,289 100.0% Crimp Cake Cid Total $35,622 $37,234 $42,323 $47,110 $0 $0 $6,923 $8,228 9,045 $15,648 $16,723 $17,744 $20,977 $595 $22,549 $24,069 $26,528 $30,617 $6,661 Direct Labor Direct Material Inventory Carry $30,858 $71,092 $1,813 $103,763 19.0% 43.8% 1.1% 63.9% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $240 $422 otal Variable ontribution $13,073 $13,165 $15,795 $16,492 S0 $58,526 36.1% Margin Period Costs: Depreciation G&A: R&D $4,907 $5,520 3,167$3,800 $0 $0 $17,393 $2,000 $5,000 $5,000 $1.494 $30,887 10.7% 1.2% 3.1% 3.1% 0.9% 19.0% $1,000 $1,000 Promotions Sales Admin $1,250 $1,250 1,250 $1,250 S0 $0 $0 $1,400 $1,400 $1,100$1,100 $8,885$9,513 $5,906 $6,584 $4,189 $3,652 9,889 $9,909 Definitions: Sales: Unit sales times list price. Direct Labor: Labor costs incurred to produce the Depreciation: Calculated on straight-line 15-year depreciation of plant value. R&D Costs: R&D each product. Other: Charges not included in other categories such as Fees, Write Offs, and $0 $0 $0 $328 $343 $390 $434 $0 $0 $0 otal Period Net Margin $0 $27,638 17.0% Other EBIT Short Term Interest LongTerm Interest $6,668 $20,970 $3,963 $13,432 $1,251 $46 $2.278 4.1% 12.9% 2.4% 8.3% 0.8% 0.0% 1.4% product that was sold. Inventory Carry Cost: the cost to carry unsold goods in inventory department expenditures for each product. Admin: Administration overhead is estimated at 1.5% of sales. Promotions: The promotion budget for each product. Sales: The sales force budget for Taxes Profit Sharing TQM. The fees include money paid to investment bankers and brokerage firms to issue new stocks or bonds plus consulting fees your instructor might assess. Write-offs include the loss you etro might experience when you sell capacity or liquidate inventory as the result of eliminating a Variable Margins Production Information 2nd Auto Shift & mation Capacity ni Pfmn Size Name Segment Sold ory Revision Date Dec.31 MTBF Coord Coord Price Cost Cost Marg ime Round Round Utiliz Primary Units Inven Age Material Labor Contr. Over- Next Next Plant 0 5/17/2020 1.624000 11.8 6.3 $29.50 $13.79 $11.34 14% 65% 4.0 0 5/17/2020 1.526000 13.9 8.3 $40.50 $14.43 $11.78 35% 96% 4.0 928 163% 914 194% 7/8/2020 1.920000 6.4 13.6 $24.50 $7.47 $6.82 38% 0% 6.0 1.130 88% 6/7/2020 1.622000 9.1 10.9 $30.50 $10.23 $8.19 36% 0% 5.0 1,200 91% re Nano 1,188 damElite1,386 Ark Able Thrift Core ,114306 715 328 Brat Baker Elite 1,288 131 8/23/2020 1.925000 15.5 7.3 $34.00 $14.56 $6.73 36% 56% 7.0 Bead Nano 1,391 231 Bid 0 11/4/2020 1.223000 12.7 5.3 $34.00 $13.66 $7.91 38% 100% 7.0 1.150 198% 800 155% 7/2/2020 1.323000 13.2 4.8 $37.00 $14.04 $7.25 41% 40% 7.0 1.150 139% Elite 1,466 325 7/24/2020 1.325000 15.3 7.0 $37.00 $14.57 $7.43 39% 52% 7.0 1.250 151% Nano 1,800 Crimp Thrift 2,226 200 6/10/2021 3.717000 7.0 13.0 $16.00 $6.80 $2.99 37% 54% 10.0 1,600 152% Cake Thrift 2,327 346 6/10/2021 3.617000 7.2 12.8 $16.00 $6.96 $2.98 35% 51% 10.0 1,800 149% Core 1,763 314 12/16/2019 2.118000 10.1 9.3 $24.00 $9.72 $4.65 37% 77% 8.0 1.250 176% Core 1,963 324 12/18/2019 2.120000 10.8 9.8 $24.00 $10.36 $4.60 35% 69% 8.0 1.500 168% Cit Cid Dell Dixie Dot Dune Core 1,053 Drat Thrift 1,094 377 12/19/2020 2.214000 7.7 12.3 $17.00 $6.82 $1.84 51% 4% 10.0 1.250 103% Daze Core 2,064 280 12/7/2018 3.116000 8.6 11.4 $19.00 $8.14 $4.21 32% 53% 10.0 1,600 152% 950 151% 900 105% Core 1,739 142 12/24/2020 0.916000 10.0 9.9 $21.00 $9.31 $5.86 29% 83% 8.0 1.050181% 0 2/10/2020 0.916000 9.7 10.3 $22.00 $9.03 $4.48 37% 100% 8.0 1.040176% Nano 1,306 137 12/16/2020 1.018000 12.1 5.2 $30.00 $12.74 $7.02 35% 53% 7.0 Elite 809 208 12/16/2020 1.020000 15.2 7.7 $36.00 $13.59 $6.19 44% 6% 7.0