Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Warren Watch Company sells watches for $27, fixed costs are $160,000, and variable costs are $14 per watch. What is the firm's gain or

image text in transcribed

The Warren Watch Company sells watches for $27, fixed costs are $160,000, and variable costs are $14 per watch.

  1. What is the firm's gain or loss at sales of 9,000 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 18,000 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 $34? -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. Item 4
  4. What would happen to the break-even point if the selling price was raised to $34 but variable costs rose to $25 a unit? Round your answer to the nearest whole number.
BREAK-EVEN ANALYSIS The Warren Watch Company sells watches for $27, fixed costs are $160,000, and variable costs are $14 per watch a. What is the firm's gain or loss at sales of 9,000 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 18,000 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 $34? -Select- d. What would happen to the break-even point if the selling price was raised to $34 but variable costs rose to $25 a unit? Round your answer to the nearest whole number. -Select

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

Step: 3

blur-text-image

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

Information Systems Assurance

Authors: David C Chan

2nd Edition

150081458X, 9781500814588

More Books

Students also viewed these Finance questions