I attended our industry's showcase conference last month and learned that Chester is updating their pricing strategy for their product City. Early intel suggests that they'll

drop the price $$1\mathrm{.}80.$ Theyll likely continue to keep both material and labor costs consistent at $$15\mathrm{.}75$ and $$8\mathrm{.}24$ per unit respectively, and I want us to better understand

What their break$-$even point is$.$

How many units $(000)$ of City must they sell to break even? You can expect their period costs to stay consistent with the income Statement available in your Drive. Thanks

in advance!

Sincerely,

Sanjay

Sanjay Singh

Board Member, Operations $|$ Andrews Corporation

$709$ units

$567$ units

$296$ units

$738$ units