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?

Given: Fixed Cost = $900,000 Selling price per unit = $180 Variable cost per unit = $130

Answered: Racer Industries has fixed costs of…

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 5EB: Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90....

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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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