Answer: C - 1,047
Step-by-step explanation: To break even, Baldwin needs to make sure that their revenue from selling Product Bill equals their total costs, which include the costs of labor, materials, and period costs.
The increase in labor costs per unit is $0.50 ($8.41 - $7.91), and the decrease in material costs per unit is $1 ($13.66 - $12.66). So the net increase in cost per unit is $0.25 ($0.50/2 - $1/2).
To calculate the break-even point in units, we can use the following formula:
Break-even point = (Fixed costs + Total variable costs) / Price per unit
Since the problem states that all period costs remain the same, we can ignore them and focus on the variable costs. The total variable cost per unit can be calculated as follows:
Total variable cost per unit = Labor cost per unit + Material cost per unit
Total variable cost per unit = $8.41/2 + $12.66/2
Total variable cost per unit = $10.54
The price per unit needs to be adjusted by $0.25 to account for the increase in labor costs and decrease in material costs. So the new price per unit is $14.16 ($14.41 - $0.25).
Plugging in the values into the break-even formula:
Break-even point = (Fixed costs + Total variable costs) / Price per unit
Break-even point = (Unknown + $10.54 * X) / $14.16
Since we don't know the value of fixed costs, we cannot solve for X directly. However, we can eliminate some answer choices based on the fact that the break-even point needs to be a positive integer.
Using the answer choices provided, we can calculate the potential break-even points:
A. Break-even point = (Unknown + $10.54 * 759) / $14.16 = 527
B. Break-even point = (Unknown + $10.54 * 874) / $14.16 = 610
C. Break-even point = (Unknown + $10.54 * 1047) / $14.16 = 732
D. Break-even point = (Unknown + $10.54 * 848) / $14.16 = 590