Question: baldwin has a new design for their product bart next round that can reduce their material cost of producing units from $8.13 to $7.32. Baldwin
baldwin has a new design for their product bart next round that can reduce their material cost of producing units from $8.13 to $7.32. Baldwin passes on half of all cost saving by cutting current price to customers. For simplicity: Assume your period costs are $5million for product Bart, and assume your new price is $16.92. current labor cost is $4.02
Determine how many units (000) of product Bart would need to be sold next round to break even on the product.
a. 945 units
b. 756 units
c. 1001 units
d. 1229 units
e. 1097 units
f. 896 units
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