Question

SISAIVNVN JAIV321 The Warren Watch Company sels watches for $21, fixed costs are $170,000, and variable costs are $11 per watch. a. What is the firm's gain or loss at sales of 9,000 watdhes? Enter loss (f any) as negative value, Round your answer to the nearest cent. What is the firm's gain or los5s at sales of 15,000 watches? Enter loss (f any) as negative value. Round your answer to the nearest cent. $ b. What is the break even point (unit sales)? Round your answer to the nearest whole number sun c. What would happen to the break even point f the seling price was raised to $34? Select d. What would happen to the break-even point f the selling price was raised to $34 but variable costs rose to $23 a unit? Round your answer to the nearest whole number Select- The result is that the break even point decreases The resut is thet the break even point remains unchanged. The resut is that the break even point inoreases Save&Continue maN apeag Continue without saving

Answer 1

© © sales [2,000x 21] => 189,000 6) variable 1 9.000X11) -) (99,000) I cost contribution = 90,000 (-) fixed cost a (1179000) loss = - 89000

@ © sales as [15,000 21] (-) variable => [19000x1) -) =) (1165,000) cost contribution (-) fixed cost 1,50000 (170,000) - 20,000 Loy ) eo calculation of break even point In units] Breck even point = fixed cost fixed cost contribution per unit 1,70,000 21-11 a) 117,000 units) calculation price was of breake event point raised to 34$ af selling (w Break event point = 1,70,000 34-11 7,391 20434782 o mite .- erat [7391 mits) result is that break even point is lower, Answer the

o calculation of was raised break even point, if selling to $34 and variable cost raised price Break even point = 1,70,000 34 - 23 15,454.5454545 Rand to nearest whole number =) 115,455 units) Answer is the result is that break even point is lower