The Warren Watch Company sells watches for $21, fixed costs are $165,000, and variable costs are...

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Finance

The Warren Watch Company sells watches for $21, fixed costs are$165,000, and variable costs are $11 per watch.
lower
higher
What is the firm's gain or loss at sales of 9,000 watches?Enter loss (if any) as negative value. Round your answer to thenearest cent.
$ ?

What is the firm's gain or loss at sales of 18,000 watches? Enterloss (if any) as negative value. Round your answer to the nearestcent.
$?

What is the break-even point (unit sales)? Round your answer tothe nearest whole number.
? units

What would happen to the break-even point if the selling pricewas raised to $32?
unchanged
What would happen to the break-even point if the selling pricewas raised to $32 but variable costs rose to $25 a unit? Round youranswer 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 isthat the break-even point decreases.

Answer & Explanation Solved by verified expert

3.6 Ratings (474 Votes)

Answer of Part a Selling Price Units Selling price per unit Selling Price 9000 21 Selling Price 189000 Variable Cost Units Variable Cost per unit Variable Cost 9000 11 Variable Cost 99000 Gain or loss Selling price Variable cost Fixed Costs Gain or loss 189000 99000 165000 Loss 75000 Answer of Part b Selling Price Units See Answer

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