90.2K

Verified Solution

Link Copied!

Chester has negotiated a new labor contract for the next round that will affect the cost for their product City. Labor costs will go from $2.86 to $3.46 per unit. Assume all period and other variable costs remain the same. If Chester were to absorb the new labor costs without passing them on in the form of higher prices, how many units of product City would need to be sold next round to break even on the product?

Select: 1

1,944 1,513 1,370 1,438

nnual Report Round: 3 Dec. 31. 2020 Chester ? 59559 Balance Sheet 2020 Common Size 17.0% 5.4% 6.2% SSETS 2019 DEFINITIONS: Common Size: The common size column simply represents each item as a percentage of total assets for that year. Cash Your end-of-year cash position. Accounts Receivable: Reflects the lag between delive S35,192 $11,142 $12,937 $40,370 $12,297 $14,865 unts Receivable your products. Inventories: The Inventory current value of your inventory across all products. A zero indicates your company stocked out. Unmet demand would, of course all to your competitors. Plant & Equipment otal Current Assets $59,271 28.6% $67,532 our avalue iatesa mater thofa1oPla $225,400 ($78,129) Plant & Equipment $242,200 umulated Depreciation (594,276) 116.9% -45.5% current value of your plant. Accum Deprec e total accumulated depreciation from your plant. Accts Payable: What the company currently owes suppliers for materials and services. Current is obligated to pay during the next year of operations. It includes emergency loans used to LIABILITIES &OWNERS keep your company solvent should you run out EQUITY of cash during the year. Long Term Debt The company's long term debt is in the form of bonds, and this represents the total value of yourCurrent Debt bonds. Common Stock: The amount of capital Long Term Debt invested by shareholders in the company Retained Earnings: The profits that the company chose to keep instead of paying to shareholders as dividends otal Fixed Assets $147,924 $147,271 Debt: The debt the company T otal Assets $207,194 100.0% $214,802 $6,750 $29,080 $92,448 $9,447 $43,732 $88,943 nts Pavable 3.3% 14.0% 44.6% otal Liabilities $128,278 61.9% $142,122 $45,589 $33,328 Stock 22.0% 16.1% $38,044 $34,636 Retained Earnin Total Equity Total Liab. & O. Equity gs $78,917 38.1% $72,680 $207,194 100.0% $214,802

Answer & Explanation Solved by verified expert

See Answer