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Chester has negotiated a new labor contract for the next round that will affect the cost for their product Coat. Labor costs will go from
Chester has negotiated a new labor contract for the next round that will affect the cost for their product Coat. Labor costs will go from $7.91 to $8.41 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 Coat would need to be sold next round to break even on the product? Select: 1 Save Answer 569 581 1,980 558 (Product Name:) Sales Na Coat $33,821 2019 Income Statement Camp Cent $35,506 $33,713 Cure $16,545 2019 Common Total Size $119,585 100.0% Nariable Costs: Direct Labor Direct Material Inventory Carry Total Variable $10,436 $14,559 $236 $25,231 $3,363 $6,094 $384 $9,841 $8,271 $14,554 $609 $23,435 $7,002 $13,685 $551 $21,238 $29,072 $48,892 $1,780 $79,744 24.3% 40.9% 1.5% 66.7% $0 Contribution Margin $8,590 $6,704 $12,072 $12,475 $39,841 33.3% $0 Period Costs: Depreciation SG&A: R&D Promotions Sales Admin Total Period $1.292 $876 $1,100 $400 $265 $3,933 $1,213 $963 $1,100 $400 $129 $3,805 $1,473 $988 $1,100 $1,200 $278 $5,039 $1,647 $939 $1,100 $1,200 $264 $5,150 $0 $o $0 $5,625 $3,765 $4,400 $3,200 $936 $17,926 4.7% 3.1% 3.7% 2.7% 0.8% 15.0% $0 $0 Chester has negotiated a new labor contract for the next round that will affect the cost for their product Coat. Labor costs will go from $7.91 to $8.41 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 Coat would need to be sold next round to break even on the product? Select: 1 Save Answer 569 581 1,980 558 (Product Name:) Sales Na Coat $33,821 2019 Income Statement Camp Cent $35,506 $33,713 Cure $16,545 2019 Common Total Size $119,585 100.0% Nariable Costs: Direct Labor Direct Material Inventory Carry Total Variable $10,436 $14,559 $236 $25,231 $3,363 $6,094 $384 $9,841 $8,271 $14,554 $609 $23,435 $7,002 $13,685 $551 $21,238 $29,072 $48,892 $1,780 $79,744 24.3% 40.9% 1.5% 66.7% $0 Contribution Margin $8,590 $6,704 $12,072 $12,475 $39,841 33.3% $0 Period Costs: Depreciation SG&A: R&D Promotions Sales Admin Total Period $1.292 $876 $1,100 $400 $265 $3,933 $1,213 $963 $1,100 $400 $129 $3,805 $1,473 $988 $1,100 $1,200 $278 $5,039 $1,647 $939 $1,100 $1,200 $264 $5,150 $0 $o $0 $5,625 $3,765 $4,400 $3,200 $936 $17,926 4.7% 3.1% 3.7% 2.7% 0.8% 15.0% $0 $0
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