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BREAK-EVEN ANALYSIS

The Warren Watch Company sells watches for $29, fixed costs are $180,000, and variable costs are $14 per watch.

1. What is the firm's gain or loss at sales of 9,000 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 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
5. What would happen to the break-even point if the selling price was raised to $33? -Select-The result is that the break-even point remains unchanged. The result is that the break-even point is lower. The result is that the break-even point is higher. Item 4
7. What would happen to the break-even point if the selling price was raised to $33 but variable costs rose to $20 a unit? Round your answer to the nearest whole number. -Select-The result is that the break-even point remains unchanged. The result is that the break-even point increases. The result is that the break-even point decreases. Item 5