The Warren Watch Company sells watches for $24, fixed costs are $195,000, and variable costs are $12 per watch.

a. What is the firm's gain 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.

What is the firm's gain or loss at sales of 20,000 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.

c. What would happen to the break-even point if the selling price was raised to $34?

- 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

d. What would happen to the break-even point if the selling price was raised to $34 but variable costs rose to $27 a unit? Round your answer to the nearest whole number.

- 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 is increases