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The Weaver Watch Company

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

What is the firm's gain or loss at sales of $8,000 watches? At 18,000 watches?

What is the breakeven point? Illustrate it by means of a chart.

What would happen to the breakeven point if the selling price were raised to $31?

What is the significance of this analysis?

What would happen to the breakeven point if the selling price were raised to $31 but variable costs rose to $23 a unit?

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Solution Summary

This is a response looking at the Weaver Watch Company and finds the breakeven point for this price.

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