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 to sponsor 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 = 7,500...View Answer
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Correct Answer:
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