Question: Problem 13-6 Break-even analysis The Warren Watch…
Problem 13-6
Break-even 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 break-even point (unit sales)? Round your answer to the nearest whole.
Units
What would happen to the break-even point if the selling price was raised to $31?
-Select-The result is that the break-even point is higher. The result is that the break-even point remains unchanged. The result is that the break-even point is lower. Item 4
What would happen to the break-even point if the selling price was raised to $31 but variable costs rose to $20 a unit? Round your answer to the nearest whole.
-Select-The result is that the break-even point decreases. The result is that the break-even point remains unchanged. The result is that the break-even point increases. Item 5
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