BREAK-EVEN ANALYSIS

The Warren Watch Company sells watches for $24, fixed costs are $185,000, and variable costs are $13 per watch.

1. 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. $________? What is the firm's gain or loss at sales of 20,000 watches? Enter loss (if any) as negative value. Round your answer to the nearest cent. $________?
3. What is the break-even point (unit sales)? Round your answer to the nearest whole number. =_______ units
4. What would happen to the break-even point if the selling price was raised to $34? *The result is that break-even point remains unchanged OR *The result is that the break-even point is lower OR *The result is that the break-even is higher.
5. What would happen to the break-even point if the selling price was raised to $34 but variable costs rose to $21 a unit? Round your answer to the nearest whole number. *The result is that the break-even point is higher. OR *The result is that the break-even point increases. OR *The result is that the break- even point decreases.