Problem 136 Breakeven analysis The Warren Watch
Question: Problem 136 Breakeven analysis The Warren Watch…
Problem 136
Breakeven analysis
The Warren Watch Company sells watches for $22, fixed costs are $195,000, and variable costs are $10 per watch.
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.
$
What is the breakeven point (unit sales)? Round your answer to the nearest whole.
Units
What would happen to the breakeven point if the selling price was raised to $31?
SelectThe result is that the breakeven point is higher. The result is that the breakeven point remains unchanged. The result is that the breakeven point is lower. Item 4
What would happen to the breakeven point if the selling price was raised to $31 but variable costs rose to $20 a unit? Round your answer to the nearest whole.
SelectThe result is that the breakeven point decreases. The result is that the breakeven point remains unchanged. The result is that the breakeven point increases. Item 5
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