Racer industries has fixed costs of $900,000. selling price per unit is $250 and variable cost per unit $130

L L Cllapters 19-22 (Problem and Short Answer Section) Problems: Racer Industries has fixed costs of S900,000. Se price per unit is $250 and variable cost per unit is $130. ng 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? 2. Carrolton, Inc. currently sells widgets for S80 per unit. The variable cost is $30 per unit and total fixed costs equal $240,000 per year. Sales are currently 20,000 units annually The company is considering a 20% drop in selling price that they believe will raise units sold by 20%. Assuming all costs stay the same, what is the impact on income if they make this change