13.6

BREAK-EVEN ANALYSIS

The Warren Watch Company sells watches for $25, fixed costs are $150,000, and variable costs are $14 per watch.

What is the firm's gain or loss at sales of 8,000 watches? Enter loss (if any) as negative value. Round your answer to the nearest cent. $ _____________ 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. $ _____________

What is the break-even point (unit sales)? Round your answer to the nearest whole number. _____________ units