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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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.

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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