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1. Weaver Watch Company produces and sells watches. It is in the process of setting its capital structure. The risks of the company can be

1. Weaver Watch Company produces and sells watches. It is in the process of setting its capital structure. The risks of the company can be classified as business risk and financial risk.

a. Please explain briefly the business risk and financial risk faced by Weaver Watch.

b. If the company sells the watch for $25, the fixed costs are $140,000, and variable costs are $15 per watch. What is the beak-even quantity of the company?

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