Chester has a new design for their product Cute next round that can reduce their material cost of producing units from $8.14 to $7.32. Chester passes on half of all cost savings by cutting the current price to customers. For simplicity: - Use current labor costs of $3.87 - Assume all period costs as reported on Chester's Income Statement (Annual Rpt Pg 2) will remain the same. Determine how many units (000) of product Cute would need to be sold next round to break even on the product. Select: a.1 1,049 units. b.2,342 units. c.939 units. d.793 units. e.991 units. f.1,288 units.
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