As part of your competitive analysis, you

As part of your competitive analysis, you notice that at Chester Corporation the Promo and Sales budgets of the Creak product are pretty low. You wonder how doubling Creak's Sales and Promo budget next year will increase demand--and aversely affect your sales. Examine the profitability of this scenario to Chester. For simplicity, assume the following: - Price remains unchanged at $15.00. - Variable costs reported on the Production Analysis Report remain constant: material stays at $5.93/unit and labor at $1.21/unit. - Promo and Sales budgets double from $1,200,000 and $1,000,000 respectively. - No inventory carry costs. - All other period costs are the same as reported on last year's Annual Report. Estimate how many units of Creak would have to be sold to reach break even.

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•  1,068 thousand units

•  559 thousand units

•  788 thousand units

•  413 thousand units