Posted: July 8th, 2022



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Chester has negotiated a new labor contract for the next round that will affect the cost for their product Cid. Labor costs will go from $7.91 to $8.41 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 the new labor costs to their customers, how many units of product Cid would need to be sold next round to break even on the product?

Select : 1

  • 541
  • 553
  • 530
  • 1,876

Of Chester Corporation’s products, which earned the lowest direct labor as a percentage of its sales?

Select : 1

  • Coat
  • Cid
  • Cure
  • Camp

What would Chester Corporation’s market capitalization be if the current price rose 10%?

Select : 1

  • $260.5 million
  • $236.8 million
  • $112.9 million
  • $102.6 million

The Chester company will increase its automation for the Cure product by 2.0. Assuming no further change in capacity, how much will this investment in automation cost?

  • $10,400,000
  • $20,800,000
  • $18,200,000
  • $9,100,000

The Digby company will continue to train their existing workforce at their current level to help reduce turnover and improve productivity next year. Employee training costs $20 per hour. How much would their training costs per employee be to the nearest dollar?

Select : 1

  • $800
  • $1,982
  • $1,182
  • $400

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