Compute the firms gain or loss at sale

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Reference no: EM1372561

The Weaver Watch firm sells watches for $25; fixed expenses are $140,000; and variable costs are $15 per watch.

a.) What is the firm's gain or loss at sale of 8,000 watches? At 18,000 watches?
b.) What is the breakeven point? Illustrate by means of a chart.
c.) What would happen to the breakeven point if the selling price were raised to $31? What is the significance of this analysis?
d.) What would happen to the breakeven point if the selling price were raised to $31 but variale costs rose to $23 a unit?

Reference no: EM1372561

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