Break-even analysis The Weaver Watch Company sells watches for $25, the fixed co

Question

Break-even analysis The Weaver Watch Company sells watches for $25, the fixed costs are $160,000, and variable costs are $11 per watch. What is the firm's gain or loss at sales of 7,000 watches? Enter loss (if any) as negative value. Round your answer to the nearest cent? What is the firm's gain or loss at sales of 16,000 watches? Enter loss (if any) as negative value. Round your answer to the nearest cent.? What is the break-even point? Round your answer to the nearest whole.?

Explanation / Answer

gain = 7000*25-(11*7000+16000) = -$62,000 so he has loss of $62,000 for break even profit =0 => q*(25-11) =160000 => q =160000/14 =11,428.57 units =11,429 units(appx) so break even point = 11,429 units(appx)

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