Problem:
Company A sells widgets for $20 each. The fixed costs are $60,000, & variable costs are $7 per widget. What is the company's gain or loss at sales of 6,000 widgets? At 15,000 widgets? How would the break-even point be affected if the selling price was raised to $25? How is this analysis significant? If the selling price was raised to $25 but variable costs rose to $13 per unit, what would happen to the break-even point? Please explain in detail and also provide step by step solution of each question.