Digby has a new design for their product drat next round that can reduce their material cost of producing units from $8.14 to $7.32. digby passes on half of all cost savings by cutting the current price to customers. for simplicity: - use current labor costs of $3.92 - assume all period costs as reported on digby's income statement (annual rpt pg 2) will remain the same. determine how many units (000) of product drat would need to be sold next round to break even on the product.

The master manufacturing company has just announced a tender offer for its own common stock. master is offering to buy up to 100% of the company's stock at $20 per share contingent on at least 64% of the outstanding shares being tendered. after the announcement of the offer, the stock closed on the nyse up 2.50 at $18.75. a customer has 100 shares of master stock in his cash account. the customer tells you that he wishes to "cash out" his position. you should recommend that the customer: