Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Warren Watch Company sells watches for $30, fixed costs are $140,000, and variable costs are $15 per watch. a. What is the firm's gain

image text in transcribed

The Warren Watch Company sells watches for $30, fixed costs are $140,000, 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 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 $32? -Select- d. What would happen to the break-even point if the selling price was raised to $32 but variable costs rose to $28 a unit? Round your answer to the nearest whole number. -Select- The Warren Watch Company sells watches for $30, fixed costs are $140,000, 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 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 $32? -Select- d. What would happen to the break-even point if the selling price was raised to $32 but variable costs rose to $28 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

College Accounting A Contemporary Approach

Authors: David Haddock, John Price, Michael Farina

4th edition

978-1259995057, 1259995054, 978-0077503987, 77503988, 978-0077639730

Students also viewed these Finance questions

Question

What are the two key principles of performance measurement?

Answered: 1 week ago