Chester has negotiated a new labor contract for the next round that will affect the cost for their product Cake. Labor costs will go from $1.77 to $2.27 per unit. Assume all period and variable costs as reported on Chester's Income Statement remain the same. If Chester were to pass on half the new labor costs to their customers, how many units of product Cake would need to be sold next round to break even on the product?

Units Sold For Cake: 956

Price: $17.00

Current Material Cost: $6.82

Current Labor Cost: $1.77

Select : 1

Submit Answer

• 880

• 908

• 854

• 1,007

2023 Income Statement Cedar Cake cake $18.258 Camp $20,964 Common Size 532 654 $27.57 51.827 58.681 54.170 20.3% $8,851 41% $5,805 5177 $7,808 58440 $14,575 5252 521.489 $11,185 $4,748 $10,163 $510 $15.41 $12.159 8 8 8 8 8 $13,16 57800 53.833 $4,800 3983 $1,140 $1.000 10.8% 2.5% 4.3% $1,140 $2,475 5114 $1,140 5900 5292 $1,813 $973 $1,140 52 200 $984 $8.511 $5,648 $1.000 S455 88 8 8 8 8 8 4.9% 57.183 $7.195 54.920 22.9% 1970 51.288 53.970 52890 2023 Income Statement Cedar Cake cake $18.258 Camp $20,964 Common Size 532 654 $27.57 51.827 58.681 54.170 20.3% $8,851 41% $5,805 5177 $7,808 58440 $14,575 5252 521.489 $11,185 $4,748 $10,163 $510 $15.41 $12.159 8 8 8 8 8 $13,16 57800 53.833 $4,800 3983 $1,140 $1.000 10.8% 2.5% 4.3% $1,140 $2,475 5114 $1,140 5900 5292 $1,813 $973 $1,140 52 200 $984 $8.511 $5,648 $1.000 S455 88 8 8 8 8 8 4.9% 57.183 $7.195 54.920 22.9% 1970 51.288 53.970 52890