# 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.

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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