Chester has negotiated a new labor contract for the next round that will affect the cost for their product Creak. Labor costs will go from $1.84 to $2.44 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 Creak would need to be sold next round to break even on the product?

Select: 1

	893
	861
	1,085
	927

ROS 14.1% Asset Turnover 1.31 ROA 8.5% Leverage (Assets/Equity) 27.3% ROE Emergency Loan $0 $194,995,019 Sales $47,617,063 EB $27,582,897 Profits $50,003,618 Cumulative Profit SG&A Sales 10.1% Contrib. Margin 43.0% Percent of Sales 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Andrews Baldwin Chester Digby COMP-XM INQUIRER 1.5% 0.72 1.1% 2.5 2.7% $0 $149,550,802 $18,643,655 $2,230,990 $6,193,744 9.0% 36.1% O Profit O Other O SGA O Depr O Var Costs Digby 0.1% 2.3% 0.73 24 0.1% 5.3% 2.4 26.1% 0.2% $0 $0 $171,123,891 $191,304,774 $15,965,612 $43,331,353 ($169,023) $23,587,275 $4,974,759 $52,051,752 7.1% 2.3% 38.5% 36.5% Market Share Andrews 27.58% Baldwin 21.15 Chester 24.21 CO Digby 27.06 Page 1