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Chester has negotiated a new labor contract for the next round that will affect the cost for their product, Cat. Labor costs will go from 2.90 to3.40 per unit. Assume all period and variable costs as reported on Chester's Income Statement remain the same. If Chester were to pass on half of the new labor costs to their customers, how many units of product Cat would need to be sold next round to break even on the product?

Chester has negotiated a new labor contract for the next round that will affect the cost for their product, Cat. Labor costs will go from 2.90 to3.40 per unit. Assume all period and

VIDEO ANSWER: The old price was 8.14 dollars per unit and the old material cost was 4.14 dollars per unit, so it was four dollars per unit. The new material co…

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