What is the firm gain or loss-what is break-even point

Assignment Help Financial Management
Reference no: EM131918467

The Warren Watch Company sells watches for $30, fixed costs are $150,000, 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 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?

-Select-The result is that the break-even point is lower. The result is that the break-even point is higher. The result is that the break-even point remains unchanged. Item 4

What would happen to the break-even point if the selling price was raised to $34 but variable costs rose to $28 a unit? Round your answer to the nearest whole number.

-Select-The result is that the break-even point increases. The result is that the break-even point decreases. The result is that the break-even point remains unchanged. Item 5

Reference no: EM131918467

Questions Cloud

What is the all equity value of the investment : The MS Company is planning to put a manufacturing facility in place to build widgets. What is the all equity value of the investment?
How has the concept of aviation safety : What are some of the realizations about loss and the idea of safety that are prevalent today? Use terms associated with aviation safety and program management.
How much money will he have at the end of four years : Terry is calculating the present value of a bonus he will receive next year. The process he is using is called ?
Read each of the five cases in health administration : Read each of the five cases in health administration. Explanation for each case that explains why the case represents its particular ACHE competency domain.
What is the firm gain or loss-what is break-even point : What is the firm's gain or loss at sales of 5,000 watches? Enter loss (if any) as negative value. What is the break-even point (unit sales)?
What are barriers to effective cross-cultural communication : What are the barriers to effective cross-cultural communication? How might these be surmounted? Identify 1 global location where this barrier is relevant.
Prepare a well labeled schedule of expected cash collections : Prepare a well labeled Schedule of Expected Cash Collections for each month of the first quarter of 2014. Prepare a well labeled Inventory Purchases Budget
Challenges associated with employee feedback : Assess the challenges of managers providing accurate, timely, and effective feedback to employees. Recommend how managers can overcome
Semi-conductor manufacturing firm with three divisions : Quipta is a semi-conductor manufacturing firm with three divisions. These are Tools, which constitutes 40 percent of the assets of the firm, Digital Equipment.

Reviews

Write a Review

Financial Management Questions & Answers

  Capital structure ratios for avon hospital against industry

Ratio analysis. Compare the capital structure ratios for Avon Hospital against industry benchmarks.

  Estimate the cost of capital at the optimal debt ratio

Estimate the cost of capital at the optimal debt ratio. (You can still use that the current regression beta of 2.1 to arrive at the new beta)

  How much are investors paying for option to buy piglet share

Piglet Pies has issued a zero-coupon 12-year bond that can be converted into 10 Piglet shares. Comparable straight bonds are yielding 10%. Piglet stock is priced at $62 a share. Suppose that you had to make a now-or0never decision on whether to conve..

  Calculate rate of return on equity for each firm

Firms HL and LL are identical except for their financial leverage ratios and the interest rates they pay on debt. Each has $12 million in invested capital, has $2.4 million of EBIT, and is in the 40% federal-plus-state tax bracket. Calculate the retu..

  Calculate the effective annual rate of interest on this loan

Calculate the effective annual rate of interest on this loan.

  What is the lease rate for which the lessor will break even

Suppose Microsoft is considering the purchase of computer servers and network infrastructure to facilitate its move into cloud-based computing. In total, it will purchase $48.4 million in new equipment. assume the equipment is worthless after five ye..

  What is present value of the annuity

A 14-ear annuity pay $2,800 per month, and payments are made at the end of each month. The interest rate is 12% compounded monthly for the first seven years, and 10% cmpounded monthly thereafter. What is the present value of the annuity?

  Prepare the gst-hst return for the quarter ending

Life Sport is a HST registrant. Prepare the GST/HST Return for the quarter ending Aug.31, 2017.

  When making its decision on accepting the new project

discuss 3 qualitative factors that the company should consider when making its decision on accepting the new project.

  Calculate the excess risk and interpret the result

How many could be avoided if NSAID X was withdrawn from the market? Calculate the excess risk and interpret the result.

  Financial institution using the standard bank confirmation

Confirm the cash balance with the client’s financial institution using the standard bank confirmation.

  The growing importance of global marketing

Based on topic of Global Markets, please post your comments on any one of the two questions. More and more companies are looking beyond the domestic market. Identify and briefly describe some of the forces that have resulted in increased global integ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd