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

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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

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?

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