Question
BREAK-EVEN ANALYSIS The Warren Watch Company sells watches for $28, fixed costs are $185,000, and variable costs are $15 per watch. 1.) What is the
BREAK-EVEN ANALYSIS
The Warren Watch Company sells watches for $28, fixed costs are $185,000, and variable costs are $15 per watch.
1.) What is the firm's gain or loss at sales of 6,000 watches? Enter loss (if any) as negative value. Round your answer to the nearest cent. $
2.) What is the firm's gain or loss at sales of 17,000 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?
5.) What would happen to the break-even point if the selling price was raised to $34 but variable costs rose to $24 a unit? Round your answer to the nearest whole number.
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