Break-even analysis, BREAK-EVEN ANALYSIS-What is the

Break-even analysis

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Reference no: EM131909298

BREAK-EVEN ANALYSIS

The Warren Watch Company sells watches for $24, fixed costs are $165,000, and variable costs are $10 per watch.

A) 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. $

B) 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 $34?

What would happen to the break-even point if the selling price was raised to $34 but variable costs rose to $20 a unit? Round your answer to the nearest whole number.

Reference no: EM131909298

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