$0$:$27$:$14$

Question $11$

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Question text

Carter Co$.$ sells two products, Arks and Bins. Last year, Carter sold $14,000$ units of Arks and $56,000$ units of Bins. Related data are:

$$

Product

Unit Selling

Price

Unit Variable

Cost

Unit Contribution

Margin

Arks

$$120$

$$80$

$$40$

Bins

$80$

$60$

$20$

$$

$$

Assuming that last year's fixed costs totaled $$960,000,$ what was Carter Co$.\text{'}$s break$-$even point in units?

Select one:

a$.$

$40,000$ units

b$.$

$12,000$ units

c$.$

$35,000$ units

d$.$

$28,000$ units

Question $12$

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Question text

Racer Industries has fixed costs of $$1,000,000.$Selling price per unit is $$250,$ and variable cost per unit is $$130.$

Required:

$($a$)$ How many units must Racer sell in order to break even?

$($b$)$ How sales dollars$$must Racer have in order to break even?

$($c$)$ A new employee suggests that Racer Industries sponsor a $10$K 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?