Schoenen Motors is a small car dealership. On average, it sells a car for $27,000, which it purchases from the manufacturer for $23,000. Each month, Schoenen Motors pays $48,200 in rent and utilities and S68,000 for salespeople salaries. In addition to their salaries, salespeople are paid a commission of $600 for each car they sell. Schoenen Motors also spends $13,000 each month for local advertisements. Its tax rate is 40% Read the requirements. Requirement 1. How many cars must Schoenen Motors sell each month to break even? Schoenen Motors must sell cars each month to break even. reach the target monthly net income of $51,000? Requirement 2. Schoenen Motors has a target monthly net income of $51,000. What is its targeted monthly operating income? How many cars must be sold each month t The target monthly operating income is They would need to sell cars to reach the target monthly income of $51,000

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Schoenen Motors is a small car dealership. On average, it sells a car for $27,000, which it purchases from the manufacturer for $23,000. Each month, Schoenen Motors pays $48,200 in rent and utilities and $68,000 for salespeople's
salaries. In addition to their salaries, salespeople are paid a commission of $600 for each car they sell. Schoenen Motors also spends $13,000 each month for local advertisements. Its tax rate is 40%.
Read the requirements.
Requirement 1. How many cars must Schoenen Motors sell each month to break even?
Schoenen Motors must sell
cars each month to break even
Requirement 2. Schoenen Motors has a target monthly net income of $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 $51,000?
The target monthly operating income is
They would need to sell
cars to reach the target monthly income of $51,000.
Transcribed Image Text:Schoenen Motors is a small car dealership. On average, it sells a car for $27,000, which it purchases from the manufacturer for $23,000. Each month, Schoenen Motors pays $48,200 in rent and utilities and $68,000 for salespeople's salaries. In addition to their salaries, salespeople are paid a commission of $600 for each car they sell. Schoenen Motors also spends $13,000 each month for local advertisements. Its tax rate is 40%. Read the requirements. Requirement 1. How many cars must Schoenen Motors sell each month to break even? Schoenen Motors must sell cars each month to break even Requirement 2. Schoenen Motors has a target monthly net income of $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 $51,000? The target monthly operating income is They would need to sell cars to reach the target monthly income of $51,000.
ach month to break even?
ak evel
Requirements
ome d
month to
1. How many cars must Schoenen Motors sell each month to break even?
2. Schoenen Motors has a target monthly net income of $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 $51,000?
hly inc
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Transcribed Image Text:ach month to break even? ak evel Requirements ome d month to 1. How many cars must Schoenen Motors sell each month to break even? 2. Schoenen Motors has a target monthly net income of $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 $51,000? hly inc Print Done next question.
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