### How many units must racer sell in order to break even

Assignment Help Accounting Basics
##### Reference no: EM13134948

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?

#### Questions Cloud

 More variation in selling prices of oceanfront homes : The standard deviation was \$21,330. At the .01 significance level, can we conclude that there is more variation in the selling prices of the oceanfront homes? Question regarding poincare model : Poincare's model of Lobachevskian geometry was to say that points of the plane are represented by points in the interior of a circle and lines by both the diameters of the circle and the arcs of circles orthogonal to it. Draw a diagram(s) to illus.. Why would certain figures such as amortization : Why would certain figures such as amortization or impairment of goodwill be different for the IFRs/GAAP adjustment for net income and stockholder's equity? Research and development costs under ifrs and gaap : Discuss the pros and cons related to research and development costs under IFRS and GAAP. With which approach do you agree? Why? How many units must racer sell in order to break even : Racer Industries has fixed costs of \$900,000. Selling price per unit is \$250 and variable cost per unit is \$130. How much depreciation should be taken : It also is 5-year recovery property. How much depreciation should be taken for 2010 assuming the company uses the accelerated depreciation method under MACRS, but does not choose to make the election to expense or to take bonus depreciation What percent of sales representatives earn more : The mean yearly amount earned is \$40,000 and the standard deviation is \$5,000. What percent of the sales representatives earn more than \$42,000 per year? Evaluate the success of the project : Quillen Company is performing a post-audit of a project completed one year ago. The initial estimates were the project would cost \$250,000, would have a useful life of 9 years, zero salvage value, and would result in net annual cash flows of \$46,0.. Cost of rectangular storage container : A rectangular storage container with an open top is to have a volume of 10m3. The length of its base its twice the width. Material for the base costs of \$10 per square meter.

### Write a Review

#### Transition of cost centers to profit centers

'Wireless Inc., provides a variety of telecommunications services to residential and commercial customers from its massive campus-like headquarters in suburban Orlando. For a number of years the firm's maintenance group has been organized as a cos..

#### Cash flows from operating-investing and financing activities

The following information is available from Gray Co.'s accounting records for the year ended December 31, 2010 (amounts in million):

#### What is his realized gain or loss

Three years later, the shareholder ssells the land for \$220,000. What is his realized gain or loss?

#### Accounting records reflecting inventories

Dolan Manufacturing Company's accounting records reflect the following inventories:

#### Balancing intercompany payables-receivables

What is the impact of not balancing intercompany payables/receivables on a monthly basis? What is the impact on not eliminating intercompany payables/receivables during the consolidation?

#### Dollar amount of the worksheet elimination

In the preparation of the 2006 consolidated financial statements, what is the dollar amount of the worksheet elimination to 2006 Retained Earnings with respect to this transaction?

#### Calculate the amount of each payment

Jason borrows \$50000 from his father and promises to pay it back over the next 10 yrs making equal annual end of the year payment .Calculate the amount of each payment if the annual interest rate is 9%.

#### Determining role of cost manager

What does the cost manager do? What information does the cost manager get and how does he use it? What decision does the cot manager make about production and how does it affect shareholders?

#### Appropriate journal entry to record the award

Prepare the appropriate journal entry to record the award of SARs on January 1, 2006.

#### Affecting the taxable income of owners

Sara owns a sole proprietorship and Phil is the sole shareholder of a C (regular) corporation. Each business sustained a \$9,000 operating loss and a \$2,000 capital loss for the year. Evaluate how these losses will affect the taxable income of the ..

#### Calculating and displaying loan in balance sheet

Show the loan in the balance sheet of the company

#### Why are not actual overhead costs traced to jobs

Why aren't actual overhead costs traced to jobs just as direct materials and direct labor costs are traced to jobs? Also, how are overhead costs assigned to jobs?

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!