Business 182 Examination 2 -Chapters 19-22 (Problem and Short Answer Section) Problems: 1. 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 ean a profit of $480,0007 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? 2. Carrolton, Inc. currently sells widgets for $80 per unit. The variable cost is $30 per unit and total fixed costs equal $240,000 per year. Sales are currently 20,000 units annually The company is considering a 20% drop in selling price that they believe will raise units sold by 20%. Assuming all costs stay the same, what is the impact on income if they make this change