Sales: $176,917
Total Variable Costs (Labor, Material, Carry): $122,957
Depreciation: $10,821
SG&A: $21,712
Other (Fees/Write-offs/Bonuses/Relocation Fee): $5,771
EBIT: $15,654
Interest (Short-Term/Long-Term): $7,756
Taxes: $2,764
Profit Sharing: $103
Net Profit: $5,031
I attended our industry's showcase conference last month and learned that Chester is updating their pricing strategy for their product Cent. Early intel suggests that they'll drop the price $1.80. They'll likely continue to keep both material and labor costs consistent at $6.90 and $9.31 per unit respectively, and I want us to better understand what their break-even point is. How many units (000) of Cent must they sell to break even? You can expect their period costs to stay consistent with the Income Statement available in your Drive.
a. 253 units
b. 967 units
c. 1191 units
d. 744 units
