Question

Chester has a new design for their product Cone 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 $4.15
- Assume all period costs as reported on Chester's Income Statement (Annual Rpt Pg 2) will remain the same (period costs $7227)..
Determine how many units (000) of product Cone would need to be sold next round to break even on the product.



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  • CreatedJuly 28, 2013
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5000