Reduce their material cost of producing units

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Reference no: EM131128429

Assume that your R&D team has a new design for their product Able next round that can reduce their material cost of producing units from $8.59 to $7.73. They pass on half of all cost savings by cutting the current price to customers. For simplicity: Use current labor cost of $8.37 Assume all period costs as reported on Andrews Income Statement for Asia Pacific (Annual Report Page 5) will remain the same. Current price is equivalent to $30.00 Shipping cost to Asia Pacific is $2.50 per unit Determine how many units (000's) of product Able would need to be sold in Asia Pacific alone next round to break even on the product

Reference no: EM131128429

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