1. How many watches would Timepiece Inc. need to sell to make a profit of $6,000?  
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3. 2. How much would Timepiece Inc. make in profit if they sold 8,000 watches?  
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5. 3. If sales increase by 2,000 watches per month, by how much will net income increase?  
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7. 4. If sales increase by $2,000 per month, by how much will net income increase? 
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9. 5. What is the break-even unit sales volume?
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11. Variable Costs Per Watch  Fixed Costs Per Month  Manufacturing costs:  
12. Manufacturing overhead  $2,000  
13. Direct materials  $5.00  
14. Selling and administrative  900  
15. Direct labor  1.00  Total  $2,900  
16. Manufacturing overhead  1.25  $7.25  
17. Selling and administrative  1.00  Total  $8.25.
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