The warren watch company sells watches for 26 fixed costs


Break-even analysis

The Warren Watch Company sells watches for $26, fixed costs are $180,000, and variable costs are $12 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.

$  

b. What is the firm's gain or loss at sales of 16,000 watches? Enter loss (if any) as negative value. Round your answer to the nearest cent.

$  

c. What is the break-even point (unit sales)? Round your answer to the nearest whole.

units

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

e. What would happen to the break-even point if the selling price was raised to $34 but variable costs rose to $20 a unit? Round your answer to the nearest whole.

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Financial Management: The warren watch company sells watches for 26 fixed costs
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