Question

Baldwin has negotiated a new labor contract for the next round that will affect the cost for their product Best. Labor costs will go from $2.01 to $2.51 per unit. In addition, their material costs have fallen from $6.82 to $5.82. Assume all period costs as reported on Baldwin's Income Statement remain the same. If Baldwin were to pass on half the new costs of labor and half the savings in materials to customers by adjusting the price of their product, how many units of product Best would need to be sold next round to break even on the product?
a) 854
b) 764
c) 880
d) 1,102

Answer 1

The answer with me d