The Weaver Watch Company sells watches for $25, the fixed costs are $140,000, and variable costs are $15 per watch.

a. What is the firm's gain or loss at sales of 8,000 watches? At 18,000 watches?

b. What is the break-even point? Illustrate by means of a chart.

c. What would happen to the break-even point if the selling price was raised to $31? Whatis the significance of this analysis?

d. What would happen to the break-even point if the selling price was raised to $31 butvariable costs rose to $23 a unit?