Precision Watches purchases a luxury watch from Germany, including insurance and shipping costs, for $620 per unit. The markup on the watch is 40% for a sales price of $868. Other traceable direct costs amount to $14 per unit. The indirect costs associated with this product amount to $47,960. How many watches must Precision Watches sell in order to break even?

Answer rating: 100% (QA)

To calculate the breakeven point we need to consider the total costs and the contribution margin ... View the full answer