Question

**BREAK-EVEN ANALYSIS**

The Warren Watch Company sells watches for $25, fixed costs are $105,000, and variable costs are $14 per watch.

- What is the firm's gain or loss at sales of 6,000 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 20,000 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 number.

units - What would happen to the break-even point if the selling price
was raised to $32?

-Select the correct option. 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. - What would happen to the break-even point if the selling price
was raised to $32 but variable costs rose to $28 a unit? Round your
answer to the nearest whole number.

-Select the correct option. 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.

Answer #1

A) Sales 150000 (6000*25)

- Variable cost 84000 (6000*14)

= Contribution 66000

- Fixed cost 105000

=Profit/loss. 39000 loss

B)Sales 500000 (20000*25)

-Variable cost 280000 (20000*14)

Contribution 220000

-Fixed cost 105000

Profit/loss 115000 profit

C) Sales 91000

-VC 14000 assuming no of units 1000

C 105000

-FC 105000

PROFIT/LOSS NIL

Therefore 91000/25= 3640 units

D) Takint into account the data of POINT C ans will be 91000/32 = 2844 units which resulted in break even point being lower then point C

E) S 77000

-VC 28000 (Assuming no of units to be 1000)

C 105000

-FC 105000

PROFIT/LOSS NIL

Break even point in terms of unit will be 77000/25= 3080 units

The break even point has increased

BREAK-EVEN ANALYSIS
The Warren Watch Company sells watches for $28, fixed costs are
$195,000, and variable costs are $13 per watch.
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.
$
What is the break-even point...

BREAK-EVEN ANALYSIS
The Warren Watch Company sells watches for $26, fixed costs are
$150,000, and variable costs are $12 per watch.
What is the firm's gain or loss at sales of 7,000 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 17,000 watches? Enter
loss (if any) as negative value. Round your answer to the nearest
cent.
$
What is the break-even point...

4- The Warren Watch Company sells watches for $25, fixed
costs are $100,000, and variable costs are $10 per
watch.
A/ What is the firm's gain or loss at sales of 7,000
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 20,000 watches? Enter
loss (if any) as negative value. Round your answer to the nearest
cent.
$
B/ What is the break-even...

The Warren Watch Company sells watches for $22, fixed costs are
$105,000, and variable costs are $15 per watch.
What is the firm's gain or loss at sales of 5,000 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 20,000 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...

The Warren Watch Company sells watches for $20, fixed costs are
$200,000, and variable costs are $13 per watch.
What is the firm's gain or loss at sales of 5,000 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...

The Atlantic Company sells a product with a break-even point of
6,475 sales units. The variable cost is $94 per unit, and fixed
costs are $375,550.
Determine the unit sales price. Round answer to nearest whole
number.
$
Determine the break-even points in sales units if the company
desires a target profit of $96,454. Round answer to the nearest
whole number.
units

1. CVP Analysis; Break-even point, margin of
safety: Davies’ Violins, Ltd, produces and sells a single
product, violins, whose selling price is $175.00 per unit and whose
variable cost is $62.00 per unit. The company's fixed expense is
$15,430 per month. The current volume of sales is 200 violins per
month.
Determine the monthly total contribution margin at the current
volume of sales.
Determine the monthly net income (loss) at the current volume
of sales.
Determine the monthly break-even point:...

Sales Mix and Break-Even Analysis
Michael Company has fixed costs of $1,021,330. The unit selling
price, variable cost per unit, and contribution margin per unit for
the company's two products are provided below.
Product
Selling
Price
Variable
Cost per Unit
Contribution Margin per Unit
Q
$440
$240
$200
Z
560
500
60
The sales mix for products Q and Z is 35% and 65%,
respectively.
Determine the break-even point in units of Q and
Z.
If required, round your answers...

Sales Mix and
Break-Even Analysis
Michael Company has
fixed costs of $500,240. The unit selling price, variable cost per
unit, and contribution margin per unit for the company's two
products follow:
Product
Selling Price
Variable Cost per Unit
Contribution Margin per Unit
QQ
$570
$330
$240
ZZ
310
240
70
The sales mix for
Products QQ and ZZ is 20% and 80%, respectively. Determine the
break-even point in units of QQ and ZZ. If required, round your
answers to the...

If the price increases, but the fixed and variable costs don't
change, the break-even point:
A
increases
B
decreases
C
remains the same
D
may increases or decreases, depending on sales

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 33 minutes ago

asked 36 minutes ago

asked 43 minutes ago

asked 46 minutes ago

asked 59 minutes ago

asked 1 hour ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago