Chester has negotiated a new labor contract for the next round that will affect the cost for their product Clack. Labor costs will go from $2.98 to $3.48 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 Clack would need to be sold next round to break even on the product? Select:

a)1,462

b) 2,279

c) 1,403

d) 1,525

Include calculations. All needed info is below:

Chester Annual Report C59559 Balance Sheet DEFINITIONS: Common Size: The common SSETS size column simply represents each item as a percentage of total assets for that year. Cash $39,781 ash our end-of-year cash position. Accounts $12,735 Receivable: Reflects the lag between delivery Accounts Receivable $14,050 and payment of your products. Inventories: The Inventory current value of your inventory across all $66,566 Total Current Assets products. A zero indicates your company stocked out. Unmet demand would, of course, Plant & Equipment $248,700 all to your competitors. Plant & Equipment The current value of your plant. Accum Deprec: Accumulated Depreciation ($94,749) The total accumulated depreciation from your Total Fixed Assets $153,951 plant. Accts Payable: What the company currently owes suppliers for materials and $220,517 services. Current Debt The debt the company Total Assets s obligated to pay during the next year of LIABILITIES & OWNERS' operations. It includes emergency loans used to keep your company solvent should you run out EQUITY of cash during the year Long Term Debt: The $8,783 Accounts Payable mpany's long term debt is in the form of $29,979 urrent Debt bonds, and this represents the total value of your bonds. Common Stock: The amount of ong Term Debt $95,560 capital invested by shareholders in the company. otal Liabilities $134,322 Retained Earnings: The profits that the company chose to keep instead of paying to $50,643 Common Stock hareholders as dividends. $35,552 Retained Earnings $86,195 Total Equity $220,517 Total Liab. & O. Equity Round: 3 Dec. 31, 2019 2019 2018 Common Size $50,449 18.0% $12,655 5.8% $4,484 6.4% $67,588 30.2% 112.8% $226,000 ($78,169) -43.0% $147,831 69.8% $215,419 100.0% 4.0% $8,010 $43,128 13.6% 43.3% $91,397 60.9% $142,535 23.0% $39,475 $33,409 16.1% $72,884 39.1% 100.0% $215,419