Question

# BREAK-EVEN ANALYSIS The Warren Watch Company sells watches for \$28, fixed costs are \$195,000, and variable...

BREAK-EVEN ANALYSIS

The Warren Watch Company sells watches for \$28, fixed costs are \$195,000, and variable costs are \$13 per watch.

1. What is the firm's gain or loss at sales of 8,000 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 19,000 watches? Enter loss (if any) as negative value. Round your answer to the nearest cent.
\$
2. What is the break-even point (unit sales)? Round your answer to the nearest whole number.
units
3. What would happen to the break-even point if the selling price was raised to \$33?
-Select: The result is that the break-even point remains unchanged. The result is that the break-even point is lower. The result is that the break-even point is higher. Item 4
4. What would happen to the break-even point if the selling price was raised to \$33 but variable costs rose to \$21 a unit? Round your answer to the nearest whole number.
-Select- The result is that the break-even point remains unchanged. The result is that the break-even point increases. The result is that the break-even point decreases.

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