How many units must racer sell in order to earn a profit

Assignment Help Accounting Basics
Reference no: EM131813620

Question - 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 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?

Reference no: EM131813620

Questions Cloud

How many units transferred to the finished goods inventory : The Blue Corporation started and completed 4,800 units during February. How many units were transferred to the Finished Goods Inventory during February
Test whether agency data support the alternative hypothesis : The government of an impoverished country reports the mean age at death among those who have survived to adulthood as 66.2 years.
Which of the three songs most effectively makes its point : Which of the three songs most effectively makes it's point? Which of these three artists would you be most likely to listen to more of?
Suppose that instead of our usual pricing scenario : Suppose that instead of our usual pricing scenario, we have a stock whose price will become either its square or its square root at the end of each period;
How many units must racer sell in order to earn a profit : How many units must Racer sell in order to earn a profit of $480,000? How many units must Racer sell in order to break even
Mexico has been destroyed by earthquake : Your manufacturing facility in Mexico has been destroyed by an earthquake.
Assesses ethical situation relating to a work environment : Prepare an 11-to 12-page paper that assesses a legal/ethical issue or situation relating to a current, previous, or potential future work environment.
Find the average household size in a certain region : The average household size in a certain region several years ago was 3.14 persons. A sociologist wishes to test, at the 5% level of significance.
What portion of jones'' income will be taxable in the united : What portion of Jones' income will be taxable in the United States

Reviews

Write a Review

Accounting Basics Questions & Answers

  Write a paper about job-order costing in service companies

Write a paper about Job-Order Costing in service Companies. Select one of the items you find in your search that you found particularly helpful in learning the topic and post a summary of the resource and a link to the resource.

  Who are the users of accounting and explain

Why are ethical fundamentals important in the accounting field and for the business? Who are the users of accounting? Explain

  Compute the rate of return for each divison using the

queensland - sales 4000000 average operating assets 2000000 net operating income 360000 property plant and equip

  Compare accrual accounting to cash flow accounting

Using what you've learned from this phase, compare accrual accounting to cash flow accounting. Discuss the strengths as weaknesses of each. Consider how each accounting system impacts a company's strategy formation and the decision makers' degree ..

  Winnovia mills processes cotton in a joint process that

winnovia mills processes cotton in a joint process that yields two joint products fabric and yarn. mays joint cost is

  The general rules for measuring and recognizing gain or loss

What are the general rules for measuring and recognizing gain or loss by both the debtor and the creditor in a troubled debt restructuring involving a modification of terms?

  Explain the top five reasons private companies

Identify and explain the top five reasons private companies go public. Explain information the firm is required to provide to the investor with complete transparency.

  Prepare the general journal entries necessary to record

(Journal entries for selected events and transactions) Prepare the general journal entries necessary to record the following selected transactions.

  Comment on this production managers assessment of his

the manager of a large semiconductor production departmentexpressed his disdain for the cost information he was

  Which is the better offer and why

You can take advantage of the dealers offer and finance the car at 1.9% or you can take advantage of the $2,500 rebate and finance the car at the going interest rate of 4.5%. Which is the better offer and why?

  Assuming that the direct labor charged to the jobs still in

jensen fences uses job order costing. manufacturing overhead is charged to individual jobs through the use of a

  Fashion jeans inc sells two lines of jeans simple life and

fashion jeans inc. sells two lines of jeans simple life and fancy life. simple life sells for 85.00 a pair and fancy

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd