The Warren Watch Company sells watches for $22, fixed costs are $145,000, and variable costs are $11 per watch. a. What is the firm's gain or loss at sales of 7,000 watches? Loss, if any, should be indicated by a minus sign. Round your answer to the nearest cent. $ What is the firm's gain or loss at sales of 18,000 watches? Loss, if any, should be indicated by a minus sign. Round your answer to the nearest cent. $ b. What is the break-even point (unit sales)? Round your answer to the nearest whole number. units A c. What would happen to the break-even point if the selling price was raised to $33? -Select- d. What would happen to the break-even point if the selling price was raised to $33 but variable costs rose to $27 a unit? Round your answer to the nearest whole number. -Select-
The Warren Watch Company sells watches for $22, fixed costs are $145,000, and variable costs are $11 per watch. a. What is the firm's gain or loss at sales of 7,000 watches? Loss, if any, should be indicated by a minus sign. Round your answer to the nearest cent. $ What is the firm's gain or loss at sales of 18,000 watches? Loss, if any, should be indicated by a minus sign. Round your answer to the nearest cent. $ b. What is the break-even point (unit sales)? Round your answer to the nearest whole number. units A c. What would happen to the break-even point if the selling price was raised to $33? -Select- d. What would happen to the break-even point if the selling price was raised to $33 but variable costs rose to $27 a unit? Round your answer to the nearest whole number. -Select-
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:The Warren Watch Company sells watches for $22, fixed costs are $145,000, and variable costs are
$11 per watch.
a. What is the firm's gain or loss at sales of 7,000 watches? Loss, if any, should be indicated by a
minus sign. Round your answer to the nearest cent.
$
19568
What is the firm's gain or loss at sales of 18,000 watches? Loss, if any, should be indicated by a
minus sign. Round your answer to the nearest cent.
$
b. What is the break-even point (unit sales)? Round your answer to the nearest whole number.
units
4
c. What would happen to the break-even point if the selling price was raised to $33?
-Select-
d. What would happen to the break-even point if the selling price was raised to $33 but variable
costs rose to $27 a unit? Round your answer to the nearest whole number.
-Select-
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