Chester has negotiated a new labor contract for the next round that will affect the cost for their product Cell. Labor costs will go from $1.78 to $2.28 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 Cell would need to be sold next round to break even on the product?

Select: 1

900

832

847

873

Annual Report Page 1 Top Annual Report Chester C59559 Round: 3 Dec. 31, 2022 (Product Name:) Sales Na Cell $13,440 2022 Income Statement Cozy Cute Grip Cake $30.415 $26.996 $28,047 $20,119 City $29,536 Na $0 2022 Common Total Size $148,552 100.0% $0 Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable $1,538 $4,818 $204 $6,561 $5,905 $13,194 $276 $19,375 $6,697 $12,577 $570 $19.845 $4.727 $9,934 $545 $15,206 $7.100 $11,965 $87 $19,152 $3,931 $8,495 $43 $0 $0 $0 $0 8 $88% $29,898 $60,983 $1,725 $92,606 20.1% 41.1% 1.2% 62.3% $12.468 Contribution Margin $6,879 $10,161 $10,571 $11.790 $8,895 $7,651 $0 $55,946 37.7% $0 $0 Period Costs: Depreciation ISGRA R&D Promotions Sales Admin Total Period $3,833 $983 $1,140 $1,000 $163 $7,119 $4,600 $0 $1.140 $1.000 $359 $7,099 $1,927 $973 $1,140 $1,000 $369 $6,309 $1,927 $973 $1,140 $2,200 $328 $6,568 $2,635 $995 $1,140 $900 $341 $6.011 $2475 $114 $1,140 $900 $244 $4,873 8888888 $17 396 $4,039 $6,640 $7,900 $1,804 $37,978 11.7% 2.7% 4.6% 5.3% 12% 25 % $0 $0 50 12.1% 5.2% 6.0% 2.0% 8.8% -1.43 0.0% -20% Net Margin {$240) $3.062 $4,262 $5,222 $2.885 $2.778 $0 $17,068 Definition: Sales: Unit sales times ist price Direct Labor Labor costs incurred to produce the product that was sold Inventory Carry Cost the cost to carry unsold goods in inventory Other $7,736 Depreciation Calculated on straight-line 15-year depreciation of plant value. R&D Costs: R&D EBIT $10.232 $3.045 department expenditures for each product. Admin Administration overhead is estimated at 1.54 Short Term Interest of sales Promotions. The promotion budget for each product Sales Themes force budget for Long Term Interest $13.028 ($2,044) Taxes each product. Other Charges not included in other categories such as Fees, Write Offs, and $ Profit Sharing TOM. The fees include money paid to investment bankers and brokerage firms to issue new Net Profit ($3,707) stocks or bonds plus consulting fees your instructor might assess. Write-offs include the loss you might experience when you sell capacity of liquidate inventory as the result of eliminating Variable Margins production the amount appears as a negative amount, then you actually made money on 2008 Chester the guidation of capacity of inventory EBIT: Earnings Before Interest and Taxes Short Term Interest Intere expense based on last year's current debt, including short term del fong term 50.0% hoten at have become due, and emergency loans Long Term Interest interest paid on 40.0% standing bonds Taxes Income tax based upon a 35 tax rate Profit Sharing Profile shared 30.0% with po oyees under the labor contract. Net Profit EBIT nos interest taxes, and profit 20.0% 10.0%