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Management Studies

A company has a new design for their product in next year that can reduce their material cost of producing units from $8.14 to $7.32. The company passes on half of all cost savings by cutting the current price to customers. For simplicity: - Use current labour costs of $4.15

Assume all period costs as reported on the Income Statement (Annual Rpt Pg 2) will remain the same.

Determine how many units (000) of the product would need to be sold next round to break even on the product.

Select: 1

1,050 units.

0 units.

993 units.

1,114 units.

1,366 units.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M9615106

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