Chester has a new design for their product Camp 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 $4.14 - 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 Camp would need to be sold next round to break even on the product. Select : 1 1,034 units. 827 units. 1,097 units. 1,344 units. 1,749 units. 978 units.
Chester has a new design for their product Camp 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 $4.14 - 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 Camp would need to be sold next round to break even on the product. Select : 1 1,034 units. 827 units. 1,097 units. 1,344 units. 1,749 units. 978 units.
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 6DRQ
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Chester has a new design for their product Camp 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 $4.14 - 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 Camp would need to be sold next round to break even on the product.
Select : 1
-
1,034 units.
-
827 units.
-
1,097 units.
-
1,344 units.
-
1,749 units.
-
978 units.
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