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Comp$-$XM $-$ Board Query

ard$-$query

epo

n

Comp XM

Simulation

Points: $16$

$24$ Capsim Management Simulations, Inc.$(8)$

Chesler has a new design for their product Oure next round that can reduce their material cost of producing units from $$8\mathrm{.}14$ to $37\mathrm{.}32.$ Chester passes on half of all cost savings by outting the ourrent price to customers. For simplicity: $-$ Use current labor costs of $$4\mathrm{.}20-$ Assume all period costs as reponed on Chester's income Statement $($Annual Rpt Pg $2)$ will remain the same. Determine how many units $(900)$ of product Oure would need to be sold next round to break even on the product.

Select $1$

$1,124$ units,

$900$ units.

$1,194$ units.

$1,462$ units.

$760$ units.

$1,063$ units.