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Business, 05.10.2019 03:20 kennyjortiz

Erie has a new design for their product echo next round that can reduce their material cost of producing units from $8.13 to $7.32. erie passes on 50% of all cost savings by cutting the current price to customers. for simplicity: current selling price = $19.00; use current labor costs of $4.02; use period costs of $7,260 (in 000s, from income statement). the break-even formula is: break-even = (fixed costs for period)/(unit selling price – unit variable cost). determine how many units (000) of product echo would need to be sold next round to break even on the product.

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