1. A company's fixed operating costs are $260,000, its variable costs are $3.65 per unit, and the product's sales price is $5.00. What is the company's break-even point; that is, at what unit sales volume will its income equal its costs? Round your answer to the nearest whole number.

2. The Warren Watch Company sells watches for $28, fixed costs are $180,000, and variable costs are $14 per watch.

1. What is the firm's gain or loss at sales of 5,000 watches? Loss, if any, should be indicated by a minus sign. Round your answer to the nearest cent.
2. What is the firm's gain or loss at sales of 18,000 watches? Loss, if any, should be indicated by a minus sign. Round your answer to the nearest cent.
3. What is the break-even point (unit sales)? Round your answer to the nearest whole number.

3. Parramore Corp has $10 million of sales, $2 million of inventories, $2.25 million of receivables, and $1 million of payables. Its cost of goods sold is 65% of sales, and it finances working capital with bank loans at a 9% rate. Assume 365 days in year for your calculations.

a. What is Parramore's cash conversion cycle (CCC)? Do not round intermediate calculations. Round your answer to two decimal places. days

b. If Parramore could lower its inventories and receivables by 8% each and increase its payables by 8%, all without affecting sales or cost of goods sold, what would be the new CCC? Do not round intermediate calculations. Round your answer to two decimal places.

c. How much cash would be freed up, if Parramore could lower its inventories and receivables by 8% each and increase its payables by 8%, all without affecting sales or cost of goods sold? Write out your answer completely. For Example, 13.2 million should be entered as 13,200,000. Do not round intermediate calculations. Round your answer to the nearest dollar.

d. By how much would pretax profits change, if Parramore could lower its inventories and receivables by 8% each and increase its payables by 8%, all without affecting sales or cost of goods sold? Write out your answer completely. For Example, 13.2 million should be entered as 13,200,000. Do not round intermediate calculations. Round your answer to the nearest dollar.