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

Financial Summary Cash Flow Statement Survey Cash flows from operating activities Net Income (Loss) Adjustment for non-cash items: Depreciation Extraordinary gains/losses/writeoffs Changes in current assets and liabilities: Accounts payable inventory Accounts receivable Net cash from operations Cash flows from investing activities Plant improvements (net Cash flows from financing activities Dividends paid Sales of common stock Purchase of common stock Cash from long term debt issued Early retirement of long term debt Retirement of current debt Cash from current debt borrowing Cash from emergency loan Net cash from financing activities Net change in cash position Balance Sheet Survey Cash Accounts Receivable inventory Total Current Assets Plant and equipment Accumulated Depreciation Total Fixed Assets Total Assets Accounts Payable Current Debt Long Term Deb Total Liabilities Common Stock Retained Earnings Total Equity Total Liabilities & owners' Equity Income Statement Survey Sales Variable Costs (Labor, Mi rial, Carry ate Depreciation SGA (R&D, Promo, Sales, Admin) Other (Fees, Writeoffs, TQM, Bonuses EBIT Interest (Short term, Long term) Taxes Profit Sharing Net Profit 000 COM P-XM NQURRER Andrews $27,583 $11,570 $0 $590 ($1,384) ($1,421) $36,937 (S36,488 $0 $0 ($7,335 $20,000 $0 $11,300 $0 $0 $1,365 $1,814 Andrews $21,323 $24,575 $2,215 $48,113 $173,552 $72,665 $100,887 $149,000 $9,234 $0 $38,809 $48,043 $8,992 $91,965 $100,956 $149,000 Andrews $194,995 $111,233 $11,570 $19,665 $4,910 $47,617 $4,316 $15,155 $563 $27,583 Baldwin $2.23 $15,893 $0 $445 $9,201 $61 $9,308 ($18,700 $0 $8,687 $0 $2,286 $0 ($42,632) $28,913 $0 $2,746 ($12,138 Baldwin $37,063 $12.292 $14,868 $64,223 $238,400 ($93,644 S144,756 $208.979 $8,463 $28,913 $89,568 $126,945 $45.745 $36.290 $82,034 $208,979 Baldwin $149.55 $95,556 $15,893 $13,409 $6.049 $18,644 $15.14 $1,226 $46 $2,23 Chester $169) $17,623 $0 $1,673 $8,236) $2,727) $8,163 $45,580) $18,185 $0 $19,320 $0 $33,938) $26,330 $0 $29,897 ($7,520) Chester $24,995 $14,065 $19,140 $58,199 $264,340 $88,022) $176,318 $234,517 $9,421 $26,330 $101,577 $137,328 $53,445 $43,744 $97,189 $234,517 Chester $171,124 $108,686 $17,623 $20,974 $7,875 $15,966 $16,226 ($91) $0 $169) Round: 3 December 31, 2018 Digby $23,587 $9,937 $0 $510 $609 $2,259 $30,147 $27,300 $0 $0 $1,89 $8,079 $0 ($32,702 $19,185 $0 $7,328 $4.48 Digby $29,205 $15,724 $19,478 $64,407 $149,060 $59.34 $89,719 $154,125 $9,532 $19,185 $35,109 $63,827 $8,42 $81,878 $90,299 $154,125 Digby $191,305 $117,703 $9,937 $13,65 $6,682 $43,331 $6,303 $12,960 $48 $23,587 Financial Summary Cash Flow Statement Survey Cash flows from operating activities Net Income (Loss) Adjustment for non-cash items: Depreciation Extraordinary gains/losses/writeoffs Changes in current assets and liabilities: Accounts payable inventory Accounts receivable Net cash from operations Cash flows from investing activities Plant improvements (net Cash flows from financing activities Dividends paid Sales of common stock Purchase of common stock Cash from long term debt issued Early retirement of long term debt Retirement of current debt Cash from current debt borrowing Cash from emergency loan Net cash from financing activities Net change in cash position Balance Sheet Survey Cash Accounts Receivable inventory Total Current Assets Plant and equipment Accumulated Depreciation Total Fixed Assets Total Assets Accounts Payable Current Debt Long Term Deb Total Liabilities Common Stock Retained Earnings Total Equity Total Liabilities & owners' Equity Income Statement Survey Sales Variable Costs (Labor, Mi rial, Carry ate Depreciation SGA (R&D, Promo, Sales, Admin) Other (Fees, Writeoffs, TQM, Bonuses EBIT Interest (Short term, Long term) Taxes Profit Sharing Net Profit 000 COM P-XM NQURRER Andrews $27,583 $11,570 $0 $590 ($1,384) ($1,421) $36,937 (S36,488 $0 $0 ($7,335 $20,000 $0 $11,300 $0 $0 $1,365 $1,814 Andrews $21,323 $24,575 $2,215 $48,113 $173,552 $72,665 $100,887 $149,000 $9,234 $0 $38,809 $48,043 $8,992 $91,965 $100,956 $149,000 Andrews $194,995 $111,233 $11,570 $19,665 $4,910 $47,617 $4,316 $15,155 $563 $27,583 Baldwin $2.23 $15,893 $0 $445 $9,201 $61 $9,308 ($18,700 $0 $8,687 $0 $2,286 $0 ($42,632) $28,913 $0 $2,746 ($12,138 Baldwin $37,063 $12.292 $14,868 $64,223 $238,400 ($93,644 S144,756 $208.979 $8,463 $28,913 $89,568 $126,945 $45.745 $36.290 $82,034 $208,979 Baldwin $149.55 $95,556 $15,893 $13,409 $6.049 $18,644 $15.14 $1,226 $46 $2,23 Chester $169) $17,623 $0 $1,673 $8,236) $2,727) $8,163 $45,580) $18,185 $0 $19,320 $0 $33,938) $26,330 $0 $29,897 ($7,520) Chester $24,995 $14,065 $19,140 $58,199 $264,340 $88,022) $176,318 $234,517 $9,421 $26,330 $101,577 $137,328 $53,445 $43,744 $97,189 $234,517 Chester $171,124 $108,686 $17,623 $20,974 $7,875 $15,966 $16,226 ($91) $0 $169) Round: 3 December 31, 2018 Digby $23,587 $9,937 $0 $510 $609 $2,259 $30,147 $27,300 $0 $0 $1,89 $8,079 $0 ($32,702 $19,185 $0 $7,328 $4.48 Digby $29,205 $15,724 $19,478 $64,407 $149,060 $59.34 $89,719 $154,125 $9,532 $19,185 $35,109 $63,827 $8,42 $81,878 $90,299 $154,125 Digby $191,305 $117,703 $9,937 $13,65 $6,682 $43,331 $6,303 $12,960 $48 $23,587