90.2K
Verified Solution
Link Copied!
BrookeBrooke
Motors is a small car dealership. On average, it sells a car for
$ 27 comma 000$27,000,
which it purchases from the manufacturer for
$ 23 comma 000.$23,000.
Each month,
BrookeBrooke
Motors pays
$ 48 comma 200$48,200
in rent and utilities and
$ 68 comma 000$68,000
for salespeople's salaries. In addition to their salaries, salespeople are paid a commission of
$ 600$600
for each car they sell.
BrookeBrooke
Motors also spends
$ 13 comma 000$13,000
each month for local advertisements. Its tax rate is 40%.
Requirements
| 1. | How many cars must BrookeBrooke Motors sell each month to break even? |
| 2. | BrookeBrooke Motors has a target monthly net income of $ 51 comma 000$51,000. What is its targeted monthly operating income? How many cars must be sold each month to reach the target monthly net income of $ 51 comma 000$51,000? |
Requirement 1. How many cars must
BrookeBrooke
Motors sell each month to break even
Answer & Explanation
Solved by verified expert
