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Digby has a new design for their product Dune next round that can reduce their material cost of producing units from $8 14 to $732

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Digby has a new design for their product Dune next round that can reduce their material cost of producing units from $8 14 to $732 Digby passes on half of all cost savings by cutting the current price to customers. For simplicity - Use curront labor costs of $3.99 - Assume all period costs as reported on Digby's Income Statement (Annual Rpt Pg 2) will remain the same Determine how many units (000) of product Dune would need to be sold next round to break even on the product TC Annual Report Digby C59559 2022 Income Statement Product Name Dot Dune Dart Deft Dim Don Na Na Total Sales $17,297 $35 395 $49,305 $32,597 $31.871 $22 639 $0 $0 5189, 194 Variable Costs: Director $1,947 $7,465 $11.900 $5,755 $8,342 $4,530 $30.045 Direct Material S6, 167 $15.686 $20.412 $12012 $9.550 $77431 $13,500 $30 Drventory Camry $158 $227 $315 $17 8 8 8 8 8 8 3 8 8 8 $802 Total Variable $23,377 $32,372 $18,082 $21,867 $8 272 $9.025 $14, 107 S118,178 Contribution Margin $12,018 $17023 $14,515 $9.904 58,532 $71017 Period Costs: Depreciation 53,833 $4,000 $2.153 $2,475 5 $1.927 $973 52 635 $995 $17,023 RAD 5083 50 $973 $114 $4030 Promotion $1,140 $1,140 $1,140 $1,140 $9,140 $1,000 $1,140 $2,200 $ $ $ $ $ $ $900 $900 $1,000 $244 $1,000 $490 $0.840 57,900 $2.000 Adren S8S 88 $696 $449 Total Period 5319 $4,947 $7.200 $6.003 $6,099 S6, 119 $30,007 Net Margin $7.239 54.770 51 125 $10,160 $7,816 $3,784 $3,585 $0 Digby has a new design for their product Dune next round that can reduce their material cost of producing units from $8 14 to $732 Digby passes on half of all cost savings by cutting the current price to customers. For simplicity - Use curront labor costs of $3.99 - Assume all period costs as reported on Digby's Income Statement (Annual Rpt Pg 2) will remain the same Determine how many units (000) of product Dune would need to be sold next round to break even on the product TC Annual Report Digby C59559 2022 Income Statement Product Name Dot Dune Dart Deft Dim Don Na Na Total Sales $17,297 $35 395 $49,305 $32,597 $31.871 $22 639 $0 $0 5189, 194 Variable Costs: Director $1,947 $7,465 $11.900 $5,755 $8,342 $4,530 $30.045 Direct Material S6, 167 $15.686 $20.412 $12012 $9.550 $77431 $13,500 $30 Drventory Camry $158 $227 $315 $17 8 8 8 8 8 8 3 8 8 8 $802 Total Variable $23,377 $32,372 $18,082 $21,867 $8 272 $9.025 $14, 107 S118,178 Contribution Margin $12,018 $17023 $14,515 $9.904 58,532 $71017 Period Costs: Depreciation 53,833 $4,000 $2.153 $2,475 5 $1.927 $973 52 635 $995 $17,023 RAD 5083 50 $973 $114 $4030 Promotion $1,140 $1,140 $1,140 $1,140 $9,140 $1,000 $1,140 $2,200 $ $ $ $ $ $ $900 $900 $1,000 $244 $1,000 $490 $0.840 57,900 $2.000 Adren S8S 88 $696 $449 Total Period 5319 $4,947 $7.200 $6.003 $6,099 S6, 119 $30,007 Net Margin $7.239 54.770 51 125 $10,160 $7,816 $3,784 $3,585 $0

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