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Q. Baldwin has a new design for their product bold next round that can reduce their material cost of producing units from $8.14 to $7.32. Baldwin passes on half of all cost savings by cutting the present price to customers. For simplicity:
Use present Labour costs of $4.12
Assume all period costs as reported on Baldwin's Income Statement will remain the same.
Find out how many units (000) of product Bold would need to be sold next round to break even on the product.
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