The Warren Watch Company sells watches for $21, fixed costs are $180,000, and variable costs are $15 per watch.

What is the firm's gain or loss at sales of 5,000 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 20,000 watches? Enter loss (if any) as negative value. Round your answer to the nearest cent.
$

What is the break-even point (unit sales)? Round your answer to the nearest whole number.
units

What would happen to the break-even point if the selling price was raised to $32?

What would happen to the break-even point if the selling price was raised to $32 but variable costs rose to $26 a unit? Round your answer to the nearest whole number.

Explanation:

Hi, to answer this question we have to apply the next formula:

Profit = Revenue -cost

Where the revenue is equal to the units sold (x) multiplied by the selling price,

R = 21 x  

And cost is equal to the sum of the fixed and variable costs.

C = 15x + 1800

So:

P = 21x-(15x +180,000)

P = x ( 21-15)- 180,000

P = 5000(21-15)-180,000

P = 5000(6) -180,000

P= 30,000-180,000

P=-$150,000  (loss , since is negative )

P = 20,000(6) -180,000

P = 120,000-180,000

P=-$60,000  (Loss)

R = C

21x = 15x + 180,000

21x-15x =180,000

6 x = 180,000

x = 180,000/6

x =30,000  units

32x = 15x + 180,000

32x-15x = 180,000

17x =180,000

x = 180,000/17

x = 10,588 units

It descends,

32x = 26x+180,000

32x-26x = 180,000

6x = 180,000

x = 180,000/6

x =30,000

The break-even point comes back to 30,000 units.

no u can still get a job there u just have to be determined.

a recipe serves 8 people, and calls for 5 lbs of apples and 2 cups of flour. you want to prepare it for 24 people. divide 24 by 8 to get 3, and then multiply your ingredients by 3.

so for 24 people, you'll need 15 lbs of apples, and 6 cups of flour.