Question: Material Cost:6.82 Labor Cost:$1.78 Price: 17 Variable Cost Direct labor: $1,988 Direct Material: $6,394 Inventory Carry: $190 Total Variable: $8,572 Period Cost Depreciation: $3,833 SG&A:

Material Cost:6.82

Labor Cost:$1.78

Price: 17

Variable Cost

Direct labor: $1,988

Direct Material: $6,394

Inventory Carry: $190

Total Variable: $8,572

Period Cost

Depreciation: $3,833

SG&A: R&D: $983

Promotions: $1,140

Sales: $1,000

Admin:$ 203

Total Period: $7,160

Company E has negotiated a new labor contract for the next round that will affect the cost for their product Easter. Labor costs will go from $1.78 to $2.28 per unit. Assume all period and variable costs as reported on Company E's Income Statement remain the same. If Company E were to pass on half the new labor costs to their customers, how many units of product Easter would need to be sold next round to break even on the product?

a:878

b:852

c:1119

d:906

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Chester has negotiated a new labor contract for the next round that will affect the cost for their product Crimp. Labor costs will go from $2.83 to $3.43 per unit. Assume all period and other...

Using the information provided below please help me answer the following questions: My company is Andrews and my product is able Your Product Pay particular attention to the sections on the low-tech...

The Chester company will sell 100 units (x1000) of capacity from their Cake product line. Each unit of capacity is worth $6 plus $4 per automation rating. The Chester company will sell the capacity...

Baldwin?s product Buzz has material costs that are rising from $6.82 to $7.82. Assume that period costs and other labor costs remain unchanged. If Baldwin decides to absorb the cost and not pass any...

Which description best fits Andrews? For clarity: - A differentiator competes through good designs, high awareness, and easy accessibility. - A cost leader competes on price by reducing costs and...

Refer to the HR Report section of the Inquirer. Digby spends $467,972 on various HR initiatives. What percentage of this expenditure is dedicated to training its employees? Select: 1 57.6% 73.7%...

Assuming no brokerage fees, calculate the amount of cash needed to retire Baldwin's 12.4S2021 bond early. Select: 1 $5,583,449 $6,305,845 $5,825,802 COMP-XM INQUIRER Page 1 Front Page Page 2 Stocks &...

The Baldwin Company currently has the following balances on their balance sheet: Total Liabilities $138,888 Common Stock $55,651 Retained Earnings $43,516 Suppose next year the Baldwin Company...

How much would it cost for Chester Corporation to repurchase all its outstanding shares if the price fell by 10%? Assume no brokerage fees. Select: 1 $187.7 million $97.4 million $87.7 million $208.6...

Of Chester Corporation?s products, which earned the lowest Net Margin as a percentage of its sales? Select: 1 Cake Cute Cedar Crimp COMP-XM INQUIRER Page 1 Front Page Page 2 Stocks & Bonds Page 3...

Beth Electronics makes CD players in three processes: assembly, programming, and packaging. Direct materials are added at the beginning of the assembly process. Conversion costs are incurred evenly...

An ideal Ericsson engine using helium as the working fluid operates between temperature limits of 550 and 3000 R and pressure limits of 25 and 200 psia. Assuming a mass flow rate of 14 lbm/s...

18. Criticize the following defi nitions in light of the eight rules for lexical defi nitions: Puberty: the time in life in which the two sexes begin fi rst to be acquainted. (Johnsons Dictionary)

A planned factory expansion project has an estimated initial cost of $800,000. Based on a discount rate of 20 percent, the present value of the future cost savings from the expansion is $843,000....

The speed of a runner increased steadily during the first three seconds of a race. Her speed at half-second intervals is given in the table. Find lower and upper estimates for the distance that she...

Wilson, Inc., has a project with an expected cash inflow of $1 million at the end of Year 5. Wilson has a second project with an expected cash inflow of $200,000, to be received at the end of each...

The income statement for Lillys Company for the year ended June 30, 2010, showed sales of $50,000. During the year, the balance in accounts receivable increased by $7,500. What adjustment to net...

Schaefer Organic Farms purchased a new tractor at a cost of $80,000. Annual operating cash inflows are expected to be $30,000 each year for four years. At the end of the tractors useful life, the...

Create a 200 word summary on the Juvenile Justice System than and today. Describe The Juvenile system and provide a generalizable definition. Highlight the issues in the Juvenile system and why this...

Jefferson's Jewelry Store is computing its inventory and cost of goods sold for November 2003. At the beginning of the month, the following jewelry items were in stock (rings were purchased in the...

The following transactions took place with respect to Model M computers in Alphas Computer Store during April 2003: April 1. Beginning inventory .... 2-2-5. . eee eee tee ee eee ee 40 computers at...

The July 2003 inventory records of Marios Bookstore showed the following: Se HUNKY SSSXCTIMIAITIAYG) MEMO. ne eo ee tac seen: 28,000 at $2.00 = $56,000 Be SOC ene ener ce er ere re ne es en Se 4,000...