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BREAK-EVEN ANALYSIS The Warren Watch Company sells watches for $20, fixed costs are $155,000, and variable costs are $14 per watch
BREAK-EVEN ANALYSIS
The Warren Watch Company sells watches for $20, fixed costs are $155,000, and variable costs are $14 per watch.
a) What is the firm's gain or loss at sales of 10,000 watches? Enter loss (if any) as negative value. Round your answer to the nearest cent.
$
b) What is the firm's gain or loss at sales of 19,000 watches? Enter loss (if any) as negative value. Round your answer to the nearest cent.
$
c) What is the break-even point (unit sales)? Round your answer to the nearest whole number. units
d) What would happen to the break-even point if the selling price was raised to $32?-Select-The result is that the break-even point is higher. The result is that the break-even point remains unchanged. The result is that the break-even point is lower. Item 4
e) What would happen to the break-even point if the selling price was raised to $32 but variable costs rose to $23 a unit? Round your answer to the nearest whole number. -Select-The result is that the break-even point decreases. The result is that the break-even point remains unchanged. The result is that the break-even point increases.
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