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Chester has negotiated a new labor contract for the next round that will affect the cost for their product Cat. Labor costs will go from $7.91 to $8.51 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 Cat would need to be sold next round to break even on the product? a)565 b)1,787 c)551 d)538

Verizon 29% i 12:04 AM ww2.capsim.com COMP-XM INQUIREK Nicholas Evans INQUIRER HUMAN RESOURCES SUMMARY Needed Complement 1st Shift Complement 2nd Shift Complement 172 0.0% 0.0% 00% 0.0% 7.7% 100% Turnover Rate New Employees Separated Employees Recruiting Spend Training Hours Productivity Index 105 116.1% Recruiting Cost Separation Cost Training Cost Total HR Admin Cost $632 $164 5532 $1,109 $1.496 $1.530 Labor Contract Next Year $29.56 $29.56 2.500 20% $29.56 $29.56 2,500 Proft Sharing 20% 20% Annual Raise Starting Negotiation Position Proft Sharing Annual Raise Celling Negotiation Position Proft Sharing Annual Raise Adjusted Labor Demands Wages Proft Sharing Verizon 12:04 AM ww2.capsim.com 29% Total Equity 588.888 540% $88 Total Liab, & O. Equity $164,556 1000% Cash Flow Statement Cash Flows from Operating Activities: Net Income (Loss) 2019 nt examines what Account during the Depreciation opear as positive drawals as Cash Flow 11,370 $1 $323 $1,031 $373) ($667 Net cash from operations $12 200 $1 h Flows from Investing Activities: loans. When eed positives, you Cash Flows from Financing Activities: ($7.400) ($29, Dividends Paid Sales of Common Stock ad and you find undance of excess eftm debt of Common Stock from long term debt $10,000 S0 (S11 $11,300) $11 n current debt (net) a huge negative Net cash from financing activities Net change in cash position $1,000 cash position you to beg for Finance Chg Cash ment Finance Page 1 Round: Andrews C59559 Dec. 31, C59559 nnual Report Dec. 31, 20 2020 Income Statement 2020 Common Total Size $177,236 100.0% (Product Name:) Art Ant $48,874 $19,802 $32,768 $59,949 $15,843 $0 e Costs: $17,034 $3,331 $8,488 $25,756 $7,142 $15,63 $5,534 $10,787 $20,894 $5,659 $0 $32,761 $9,575 $20,305 $46,662 $12,802 S0 $61,751 $58,507 $1,847 $122,105 34.8% 33.0% 1.0% 68.9% $0 nventory Carry $96 $710 $1,030 $12 SO $0 $16,113 $10,227 $12,463 $13,287 $3,041 SO $0 $55,131 31.1% Costs $1,493 $3,280 4,080 $2.183 $333 $731 $1,400 $1,400 1,400 $1.400 $3,000 $1,400 $1,500 $1,500 $1,500 $3,300 $179 $5,219 $7,403 $8,349 6,244$7,542 $11.370 $3.590 $8,600 $9.200 $1.997 $34.757 6.4% 2.0% 4.9% 5.2% 1.1% 19.6% R&D $375 $1,000 1,000 SO $551 $369 $675 10,895 $2,823 $4,114 $7,043 ($4,501) $0 $20,374 11.5% Definitions: Sales: Unit sales times list price. Direct R FRA 4 84 Verizon 29% i 12:04 AM ww2.capsim.com COMP-XM INQUIREK Nicholas Evans INQUIRER HUMAN RESOURCES SUMMARY Needed Complement 1st Shift Complement 2nd Shift Complement 172 0.0% 0.0% 00% 0.0% 7.7% 100% Turnover Rate New Employees Separated Employees Recruiting Spend Training Hours Productivity Index 105 116.1% Recruiting Cost Separation Cost Training Cost Total HR Admin Cost $632 $164 5532 $1,109 $1.496 $1.530 Labor Contract Next Year $29.56 $29.56 2.500 20% $29.56 $29.56 2,500 Proft Sharing 20% 20% Annual Raise Starting Negotiation Position Proft Sharing Annual Raise Celling Negotiation Position Proft Sharing Annual Raise Adjusted Labor Demands Wages Proft Sharing Verizon 12:04 AM ww2.capsim.com 29% Total Equity 588.888 540% $88 Total Liab, & O. Equity $164,556 1000% Cash Flow Statement Cash Flows from Operating Activities: Net Income (Loss) 2019 nt examines what Account during the Depreciation opear as positive drawals as Cash Flow 11,370 $1 $323 $1,031 $373) ($667 Net cash from operations $12 200 $1 h Flows from Investing Activities: loans. When eed positives, you Cash Flows from Financing Activities: ($7.400) ($29, Dividends Paid Sales of Common Stock ad and you find undance of excess eftm debt of Common Stock from long term debt $10,000 S0 (S11 $11,300) $11 n current debt (net) a huge negative Net cash from financing activities Net change in cash position $1,000 cash position you to beg for Finance Chg Cash ment Finance Page 1 Round: Andrews C59559 Dec. 31, C59559 nnual Report Dec. 31, 20 2020 Income Statement 2020 Common Total Size $177,236 100.0% (Product Name:) Art Ant $48,874 $19,802 $32,768 $59,949 $15,843 $0 e Costs: $17,034 $3,331 $8,488 $25,756 $7,142 $15,63 $5,534 $10,787 $20,894 $5,659 $0 $32,761 $9,575 $20,305 $46,662 $12,802 S0 $61,751 $58,507 $1,847 $122,105 34.8% 33.0% 1.0% 68.9% $0 nventory Carry $96 $710 $1,030 $12 SO $0 $16,113 $10,227 $12,463 $13,287 $3,041 SO $0 $55,131 31.1% Costs $1,493 $3,280 4,080 $2.183 $333 $731 $1,400 $1,400 1,400 $1.400 $3,000 $1,400 $1,500 $1,500 $1,500 $3,300 $179 $5,219 $7,403 $8,349 6,244$7,542 $11.370 $3.590 $8,600 $9.200 $1.997 $34.757 6.4% 2.0% 4.9% 5.2% 1.1% 19.6% R&D $375 $1,000 1,000 SO $551 $369 $675 10,895 $2,823 $4,114 $7,043 ($4,501) $0 $20,374 11.5% Definitions: Sales: Unit sales times list price. Direct R FRA 4 84

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