managerial accounting

Varren Watch Compary selis watches for $30, fixed costs are $190,000, and variable costs are $13 per watch. a. What is the firm's aain or loss at sales of 5,000 watches? Loss, If any, should be indicated by a minus sign. Round your answer to the nearest cent. 5 What is the firm's oain or loss at sales of 17,000 watches? Loss, if any, should be indicated by a minus sign. Round your answer to the nearest cent. b. What is the break-even point (unit sales)? Round your answer to the nearest whole number. units c. What would hanoen to the break-even noint if the sallins nrice was raised to $31 ? d. What would hilenen tn tha hriak-eunn nilat if whe eallinn neice was raised to $31 but variable costs rose to $24 a unit? Round your answer to the nearest whole numbe irms HL and UL are identical except for their financial leverage ratios and the interest rates they pay on debt, Each has $17 million in invested capital, has $2,55 million of EBIT, and in the 25% federal-plus-state tax bracket. Firm HL, however, has a debt-to-capital ratio of 60% and pays 11% interest on its debt, whereas LL has a 25% debt-to-capital ratio and only 9% interest on its debt. Neither firm uses preferred stock in its capltal structure. a. Calculate the return on invested capital (ROIC) for each firm. Round your answers to two decimal places. Ro1C for firm LL: Aotc for firm HL: b. Calculate the rate of return on equity (ROE) for each firm. Round your answers to two decimal places: ROE for firm LL: ROE for firm HLL c. Observing thot H. has a higher ROE, U's treasurer is thinking of raising the debt-to-capital ratio from 25% to 60% even though that would increase Li's interest rate on all debt to 15%. Calculate the new ROE for U Plound your answer to two decimal places