Racer Industries has fixed costs of $900,000. The selling price per unit is $180, and the variable cost per unit is $130. How many units must Racer sell in order to break even? How many units must Racer sell in order to earn a profit of $400,000? A new employee suggests that Racer Industries sponsor a 10K marathon as a form of advertising. The cost to sponsor the event is $8,500. How many more units must be sold to cover this cost?
Racer Industries has fixed costs of $900,000. The selling price per unit is $180, and the variable cost per unit is $130. How many units must Racer sell in order to break even? How many units must Racer sell in order to earn a profit of $400,000? A new employee suggests that Racer Industries sponsor a 10K marathon as a form of advertising. The cost to sponsor the event is $8,500. How many more units must be sold to cover this cost?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Racer Industries has fixed costs of $900,000. The selling price per unit is $180, and the variable cost per unit is $130.
- How many units must Racer sell in order to break even?
- How many units must Racer sell in order to earn a profit of $400,000?
- A new employee suggests that Racer Industries sponsor a 10K marathon as a form of advertising. The cost to sponsor the event is $8,500. How many more units must be sold to cover this cost?
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