Essay
Racer Industries has fixed costs of $900,000. Selling price per unit is $250, and variable cost per unit is $130.
Required
(a) How many units must Racer sell in order to break even?
(b) How many units must Racer sell in order to earn a profit of $480,000?
(c) A new employee suggests that Racer Industries sponsor a 10K marathon as a form of advertising. The cost tosponsor the event is $7,200. How many more units must be sold to cover this cost?
Correct Answer:
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?(a) $900,000/ ($250 - $130) =...View Answer
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