I attended our industrys showcase conference last month and learned that Chester is updating their pricing strategy for their product Cure. Early intel suggests that theyll drop the price $1.70. Theyll likely continue to keep both material and labor costs consistent at 6.16 and 6.88 per unit respectively and I want us to better understand what their break-even point is.

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

\begin{tabular}{|c|c|c|c|c|c|c|} \hline \multicolumn{7}{|c|}{CashFlowStatement} \\ \hline & Andrews & Baldwin & Chester & Digby & Erie & Ferris \\ \hline \multicolumn{7}{|l|}{ Cash From Operations } \\ \hline Net Income(Loss) & $12,972 & $12,738 & $5,111 & $7,468 & $7,811 & $6,850 \\ \hline \multicolumn{7}{|l|}{ Adjustment For Non-Cash Items } \\ \hline Depreciation & $11,649 & $11,210 & $10,791 & $12,157 & $11,835 & $12,242 \\ \hline Extraordinary Gains/Losses/Write-offs & $0 & $0 & $47 & $0 & $0 & $90 \\ \hline \multicolumn{7}{|l|}{ Changes In Current Assets And Liabilities } \\ \hline Accounts Payable & $4,434 & $1,740 & $3,736 & $2,243 & $2,083 & $3,313 \\ \hline Inventory & ($11,633) & ($6,153) & ($16,767) & ($2,951) & ($19,841) & ($7,425) \\ \hline Accounts Receivable & ($3,073) & ($1,465) & ($2,727) & ($1,617) & ($895) & ($4,151) \\ \hline Net Cash From Operations & $14,348 & $18,069 & $191 & $17,299 & $993 & $10,919 \\ \hline \multicolumn{7}{|l|}{ Cash From Investing } \\ \hline Net Plant Improvements & ($26,136) & ($21,145) & ($28,460) & ($48,556) & ($36,926) & ($25,448) \\ \hline \multicolumn{7}{|l|}{ Cash From Financing } \\ \hline Dividends Paid & $0 & ($2,588) & $0 & $0 & $0 & $0 \\ \hline Sales Of Common Stock & $0 & $0 & $0 & $0 & $0 & $0 \\ \hline Purchase Of Common Stock & ($3,603) & ($5,602) & ($5,086) & ($6,321) & ($619) & $0 \\ \hline Cash From Long-Term Debt Issued & $0 & $0 & $0 & $5,396 & $5,394 & $20,561 \\ \hline Early Retirement Of Long-Term Debt & $0 & $0 & $0 & $0 & $0 & $0 \\ \hline Retirement Of Current Debt & ($12,100) & ($5,800) & ($6,300) & ($4,300) & $0 & ($14,400) \\ \hline Cash From Current Debt Borrowing & $0 & $0 & $0 & $0 & $0 & $0 \\ \hline Cash From Emergency Loan & $0 & $0 & $0 & $0 & $0 & $0 \\ \hline Net Cash From Financing & ($15,703) & ($13,990) & ($11,386) & ($5,225) & $4,775 & $6,161 \\ \hline Net Change In Cash & ($27,491) & ($17,066) & ($39,656) & ($36,482) & ($31,158) & ($8,368) \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{10}{|c|}{ Income Statement } \\ \hline & Clack & Cure & Cone & Cozy & Cedar & Cid & Total & Industry Avg & Percentage \\ \hline Sales & $15,639 & $27,923 & $36,063 & $27,130 & $34,684 & $35,442 & $176,881 & $164,456 & 100% \\ \hline \multicolumn{10}{|l|}{ Variable Costs } \\ \hline Direct Material & $5,423 & $7,090 & $15,008 & $12,827 & $12,981 & $15,488 & $68,817 & $60,674 & 38.9% \\ \hline Direct Labor & $6,934 & $9,144 & $10,671 & $7,056 & $10,291 & $7,565 & $51,661 & $43,836 & 29.2% \\ \hline Inventory Carry & $317 & $159 & $958 & $477 & $513 & $0 & $2,423 & $1,575 & 1.4% \\ \hline Total Variable Costs (Labor, Material, Carry) & $12,674 & $16,393 & $26,637 & $20,360 & $23,785 & $23,052 & $122,901 & $106,085 & 69.5% \\ \hline Contribution Margin & $2,964 & $11,530 & $9,426 & $6,770 & $10,899 & $12,389 & $53,979 & $58,372 & 30.5% \\ \hline \multicolumn{10}{|l|}{ Period Costs } \\ \hline Depreciation & $1,549 & $2,946 & $1,476 & $1,438 & $1,872 & $1,510 & $10,791 & $11,647 & 6.1% \\ \hline \multicolumn{10}{|l|}{ SG\&A } \\ \hlineR&D & $79 & $829 & $1,000 & $921 & $889 & $981 & $4,699 & $2,941 & 2.7% \\ \hline Sales & $805 & $1,280 & $1,370 & $1,370 & $1,370 & $1,370 & $7,563 & $7,282 & 4.3% \\ \hline Administration & $139 & $248 & $320 & $241 & $308 & $314 & $1,569 & $1,353 & 0.9% \\ \hline Total Period Costs & $3,551 & $6,483 & $5,585 & $5,389 & $5,857 & $5,595 & $32,460 & $30,337 & 18.4% \\ \hline \multirow[t]{8}{*}{ Net Margin } & ($587) & $5,048 & $3,841 & $1,381 & $5,042 & $6,795 & $21,519 & $28,035 & 12.2% \\ \hline & & & & & \multicolumn{2}{|c|}{ Other Expenses } & $5,740 & $6,161 & 3.2% \\ \hline & & & & & \multicolumn{2}{|r|}{ EBIT } & $15,780 & $21,873 & 8.9% \\ \hline & & & & & \multicolumn{2}{|c|}{ Short-Term Interest } & $1,571 & $1,529 & 0.9% \\ \hline & & & & & \multicolumn{2}{|c|}{ Long-Term Interest } & $6,186 & $6,491 & 3.5% \\ \hline & & & & & \multicolumn{2}{|c|}{ Taxes \& Tariffs } & $2,808 & $4,849 & 1.6% \\ \hline & & & & & \multicolumn{2}{|c|}{ Profit Sharing } & $104 & $180 & 0.1% \\ \hline & & & & & \multicolumn{2}{|r|}{ Net Profit } & $5,111 & $8,825 & 2.9% \\ \hline \end{tabular} Stock \& Bonds Round: 4 Dec. 31, 2026 \begin{tabular}{|c|c|c|c|c|c|c|c|} \hline \multicolumn{8}{|c|}{ Selected Financial Statistics } \\ \hline & Andrews & Baldwin & Chester & Digby & Erie & Ferris & Average \\ \hline ROS & 6.4% & 7.6% & 2.9% & 4.4% & 5.7% & 5.2% & 5.4% \\ \hline Asset Turnover & 1.17 & 1.04 & 1.16 & 1.05 & 0.88 & 0.79 & 1.01 \\ \hline ROA & 7.5% & 7.9% & 3.4% & 4.7% & 5.0% & 4.1% & 5.4% \\ \hline Leverage & 1.80 & 1.75 & 1.93 & 1.85 & 1.85 & 1.89 & 1.85 \\ \hline ROE & 13.4% & 13.8% & 6.5% & 8.6% & 9.3% & 7.7% & 9.9% \\ \hline Sales & $203,679 & $168,112 & $176,881 & $168,065 & $137,547 & $132,455 & $164,457 \\ \hline EBIT & $28,443 & $27,523 & $15,780 & $19,664 & $20,105 & $19,726 & $21,874 \\ \hline Profit & $12,972 & $12,738 & $5,111 & $7,468 & $7,811 & $6,850 & $8,825 \\ \hline Cumulative Profit & $17,157 & $16,923 & $9,296 & $11,653 & $11,996 & $11,036 & $13,010 \\ \hline SG\&A to Sales Ratio & 10.97% & 11.42% & 12.25% & 10.87% & 13.68% & 8.94% & 11.35% \\ \hline Contribution Margin & 32.27% & 38.84% & 30.52% & 32.92% & 41.96% & 39.41% & 35.99% \\ \hline Emergency Loan & $0 & $0 & $0 & $0 & $0 & $0 & $0 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multicolumn{7}{|c|}{ Balance Sheet } \\ \hline & Andrews & Baldwin & Chester & Digby & Erie & Ferris \\ \hline Cash & $27,352 & $32,881 & $7,485 & $24,564 & $4,006 & $26,460 \\ \hline Accounts Receivable & $16,741 & $13,817 & $14,538 & $13,814 & $11,305 & $10,887 \\ \hline Inventory & $17,065 & $9,228 & $20,194 & $2,951 & $21,905 & $7,425 \\ \hline Total Current Assets & $61,158 & $55,926 & $42,218 & $41,329 & $37,216 & $44,771 \\ \hline Plant And Equipment & $174,736 & $168,145 & $161,867 & $182,356 & $177,526 & $183,632 \\ \hline Accumulated Depreciation & ($62,536) & ($62,176) & ($52,038) & ($63,190) & ($58,855) & ($59,736) \\ \hline Total Fixed Assets & $112,201 & $105,969 & $109,829 & $119,166 & $118,671 & $123,896 \\ \hline Total Assets & $173,358 & $161,895 & $152,047 & $160,495 & $155,887 & $168,668 \\ \hline Accounts Payable & $12,127 & $8,866 & $11,280 & $9,480 & $7,976 & $7,133 \\ \hline Current Debt & $13,900 & $13,900 & $13,900 & $13,900 & $13,900 & $13,900 \\ \hline Long-Term Debt & $50,850 & $46,850 & $48,250 & $50,446 & $49,644 & $58,611 \\ \hline Total Liabilities & $76,877 & $69,616 & $73,430 & $73,826 & $71,520 & $79,645 \\ \hline Common Stock & $42,141 & $40,123 & $36,626 & $37,191 & $33,588 & $46,760 \\ \hline Retained Earnings & $54,340 & $52,156 & $41,991 & $49,477 & $50,779 & $42,263 \\ \hline Total Equity & $96,481 & $92,279 & $78,616 & $86,668 & $84,367 & $89,023 \\ \hline Total Liabilities \& Owner's Equity & $173,358 & $161,895 & $152,047 & $160,495 & $155,887 & $168,668 \\ \hline \multicolumn{7}{|c|}{ Income Statement } \\ \hline & Andrews & Baldwin & Chester & Digby & Erie & Ferris \\ \hline Sales & $203,679 & $168,112 & $176,881 & $168,065 & $137,547 & $132,455 \\ \hline Total Variable Costs (Labor, Material, Carry) & $137,958 & $102,820 & $122,901 & $112,746 & $79,829 & $80,255 \\ \hline Depreciation & $11,649 & $11,210 & $10,791 & $12,157 & $11,835 & $12,242 \\ \hlineSG&A & $22,333 & $19,194 & $21,669 & $18,276 & $18,821 & $11,844 \\ \hline Other (Fees/Write-offs/Bonuses/Relocation Fee) & $3,295 & $7,366 & $5,740 & $5,223 & $6,956 & $8,389 \\ \hline EBIT & $28,443 & $27,523 & $15,780 & $19,664 & $20,105 & $19,726 \\ \hline Interest (Short-Term/Long-Term) & $8,079 & $7,526 & $7,756 & $7,941 & $7,843 & $8,972 \\ \hline Taxes & $7,127 & $6,999 & $2,808 & $4,103 & $4,292 & $3,764 \\ \hline Profit Sharing & $265 & $260 & $104 & $152 & $159 & $140 \\ \hline Net Profit & $12,972 & $12,738 & $5,111 & $7,468 & $7,811 & $6,850 \\ \hline \end{tabular}