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Material Cost:6.82 Labor Cost:$1.78 Price: 17 Variable Cost Direct labor: $1,988 Direct Material: $6,394 Inventory Carry: $190 Total Variable: $8,572 Period Cost Depreciation: $3,833 SG&A:

Material Cost:6.82

Labor Cost:$1.78

Price: 17


Variable Cost

Direct labor: $1,988

Direct Material: $6,394

Inventory Carry: $190

Total Variable: $8,572


Period Cost

Depreciation: $3,833

SG&A: R&D: $983

Promotions: $1,140

Sales: $1,000

Admin:$ 203

Total Period: $7,160


Company E has negotiated a new labor contract for the next round that will affect the cost for their product Easter. Labor costs will go from $1.78 to $2.28 per unit. Assume all period and variable costs as reported on Company E's Income Statement remain the same. If Company E were to pass on half the new labor costs to their customers, how many units of product Easter would need to be sold next round to break even on the product?


a:878

b:852

c:1119

d:906

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