The question: Baldwin has negotiated a new labor contract for the next round that will affect the cost for their product BOBBBY. Labor costs will go from $2.82 to $3.32 per unit. In addition, their material costs have fallen from $6.80 to $5.80. Assume all period costs as reported on Baldwins Income statement remain the same. If Baldwin were to pass on half the new costs of labor and half the savings in material to customers by adjusting the price of their product, how many units of product BOBBY would need to be sold next round to break even on the product?

The data for product BOBBY is as follows:

Sales: $28,732 Contribution Margin: $10,894 Net Margin: $2,226

Units Sold: 1,796 Units Inventory: 135

Revision Date: 6/10/2023 Age Dec 31st: 3.7

MTBF: 17,000 Performance: 8.4 Size: 11.7

Price: $16 Material Cost: $6.80 Labor Cost: $2.82

Contribution Margin: 38% 2nd Shift & Overtime: 26%

Automation Next Round: 10 Capacity Next Round: 1,550 Plant Utilization: 125%

*PLEASE LET ME KNOW IF I NEED TO ADD MORE DATA*

or guide me in the direction of a formula to use to figure out the answer