Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Warren Watch Company sells watches for $25, fixed costs are $185,000, and variable costs are $15 per watch. What is the firm's gain or

The Warren Watch Company sells watches for $25, fixed costs are $185,000, and variable costs are $15 per watch.

  1. What is the firm's gain or loss at sales of 7,000 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 19,000 watches? Enter loss (if any) as negative value. Round your answer to the nearest cent. $
  2. What is the break-even point (unit sales)? Round your answer to the nearest whole number. _____ units
  3. What would happen to the break-even point if the selling price was raised to $35? - select- 1-. The result is that the break-even point is higher. 2.- The result is that the break-even point remains unchanged. 3.-The result is that the break-even point is lower.
  4. What would happen to the break-even point if the selling price was raised to $35 but variable costs rose to $28 a unit? Round your answer to the nearest whole number. -Select- 1.- The result is that the break-even point decreases. 2.-The result is that the break-even point remains unchanged. 3.-The result is that the break-even point increases.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Short Term Financial Management

Authors: John Zietlow, Matthew Hill, Terry Maness

5th Edition

1516512405, 9781516512409

More Books

Students also viewed these Finance questions

Question

What are internal control deficiencies in design and in operation?

Answered: 1 week ago

Question

What are the ethical scrutiny requirements of your centre?

Answered: 1 week ago