Racer Industries has fixed costs of $900,000. Selling price per unit is $250 and variable cost per

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Racer Industries has fixed costs of $900,000. Selling price per unit is $250 and variable cost per unit is $130.

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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 company 10-K 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?

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Principles of Accounting

ISBN: 978-1133626985

12th edition

Authors: Belverd E. Needles, Marian Powers and Susan V. Crosson

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Question Posted: Jan 23, 2017 02:46 AM

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Racer Industries has fixed costs of $900,000. Selling price per unit is $250 and variable cost per

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