Question: Baldwin has a new design for their product Bid next round that can reduce their material cost of producing units from $8.14 to $7.32. Baldwin
Baldwin has a new design for their product Bid next round that can reduce their material cost of producing units from $8.14 to $7.32. Baldwin passes on half of all cost savings by cutting the current price to customers. For simplicity: - Use current labor costs of $4.00 - Assume all period costs as reported on Baldwin's Income Statement (Annual Rpt Pg 2) will remain the same. Determine how many units (000) of product Bid would need to be sold next round to break even on the product. Select: 1 947 units. 2,187 units. 1,300 units. 1,060 units. 800 units. 1,000 units.
use this : http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?studentKey=1606231&simid=C59559&round=7&Report=CapCourier|AnnReport
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