Question
The Warren Watch Company sells watches for $20, fixed costs are $160,000, and variable costs are $15 per watch. a. What is the firm's gain
The Warren Watch Company sells watches for $20, fixed costs are $160,000, and variable costs are $15 per watch.
a. 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.______??? $.
What is the firm's gain or loss at sales of 15,000 watches? Enter loss (if any) as negative value. Round your answer to the nearest cent.______$
b. What is the break-even point (unit sales)? Round your answer to the nearest whole number. _______ ??? units
c. What would happen to the break-even point if the selling price was raised to $33? -Select- The result is that the break-even point is higher. / The result is that the break-even point remains unchanged. / The result is that the break-even point is lower.
What would happen to the break-even point if the selling price was raised to $33 but variable costs rose to $28 a unit? Round your answer to the nearest whole number. -Select-The result is that the break-even point decreases. / The result is that the break-even point remains unchanged. / The result is that the break-even point increases.
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