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 $2.95 to $3.45 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 Creak would need to be sold next round to break even on the product?

Select: 1

A	1,452
B	1,391
C	1,336
D	2,025

Selling price of the product is $16.

How would I calculate this?

roduct Name Creal $30,785 Sales riable Costs $5.676 Direct Labo Direct Material $13,523 $186 Inventory Carry 519,385 Total Variable Contribution $11,401 Margin Period Costs $4.293 Depreciation SG&A: R&D $1,000 romotions $1,250 Sales $1,400 Admin $403 Total Pe riod $8,346 Net Margin $3,055