Break-even analysis- the weaver watch company sells watches, Ask an Expert

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Break-Even Analysis- The Weaver Watch Company sells watches for $25, fixed costs are $140,000 and variables costs are $15 per watch. a) What is the firm`s gain or loss at sales of 8,000 watches? At 18,000 watches? b) What is the break-even point? Illustrate by means of a chart. c) What would happen to the breakeven point if the selling price was raised to $31? What is the significance of this analysis? d) What would happen to the break-even point if the selling price was raised to $31 but variable costs raised to $23 a unit?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91602916

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