Question
The Warren Watch Company sells watches for $22, fixed costs are $150,000, and variable costs are $13 per watch. What is the firm's gain or
The Warren Watch Company sells watches for $22, fixed costs are $150,000, and variable costs are $13 per watch. What is the firm's gain or loss at sales of 6,000 watches? Loss, if any, should be indicated by a minus sign. Round your answer to the nearest cent. $___________ What is the firm's gain or loss at sales of 19,000 watches? Loss, if any, should be indicated by a minus sign. Round your answer to the nearest cent. $__________________
What is the break-even point (unit sales)? Round your answer to the nearest whole number. ______________units
What would happen to the break-even point if the selling price was raised to $31? a.) The result is that the break-even point is higher. b.) The result is that the break-even point remains unchanged. c.) 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 $31 but variable costs rose to $20 a unit? Round your answer to the nearest whole number. a.) The result is that the break-even point decreases. b.) The result is that the break-even point remains unchanged. c.) The result is that the break-even point increases. |
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