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? fill in the blank 1 units b. How many units must Racer sell in order to earn a profit of $480,000? fill in the blank 2 units 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? fill in the blank 3 units

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? fill in the blank 1 units b. How many units must Racer sell in order to earn a profit of $480,000? fill in the blank 2 units 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? fill in the blank 3 units

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 6EA: Reubens Deli currently makes rolls for deli sandwiches it produces. It uses 30,000 rolls annually in...

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Question

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?
fill in the blank 1 units

b. How many units must Racer sell in order to earn a profit of $480,000?
fill in the blank 2 units

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?
fill in the blank 3 units

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