Schoenen Motors is a small car dealership. On average it sells a car for $33,000, which it purchases from the manufacturer for $29,000, Each month, Schoenen Motors pays $66,000 in rent and utilities and $73,000 for salespeople's salaries. In addition to their salaries, salespeople are paid a commission of $700 for each car they sell. Schoenen Motors also spends $12,000 each month for local advertisements. Its tax rate is 40%. Required 1. How many cars must Schoenen Motors sell each month to break even? 2. Schoenen Motors has a target monthly net income of $64,500. What is its target operating income? How many cars must be sold each month to reach the target monthly net income of $64,500? Requirement 1. How many cars must Schoenen Motors sell each month to break even? Schoenen Motors must sell cars each month to break even. (Round the number of cars up to the nearest whole number.) Requirement 2. Schoenen Motors has a target monthly net income of $64,500, What is its target operating income? How many cars must be sold each month to reach the target monthly net income of $64,500? The target monthly operating income is $ Schoenen Motors would need to sell cars to reach the target monthly net income of S64,500. (Round the number of cars up to the nearest whole number.) Enter your answer in each of the answer boxes.
Schoenen Motors is a small car dealership. On average it sells a car for $33,000, which it purchases from the manufacturer for $29,000, Each month, Schoenen Motors pays $66,000 in rent and utilities and $73,000 for salespeople's salaries. In addition to their salaries, salespeople are paid a commission of $700 for each car they sell. Schoenen Motors also spends $12,000 each month for local advertisements. Its tax rate is 40%. Required 1. How many cars must Schoenen Motors sell each month to break even? 2. Schoenen Motors has a target monthly net income of $64,500. What is its target operating income? How many cars must be sold each month to reach the target monthly net income of $64,500? Requirement 1. How many cars must Schoenen Motors sell each month to break even? Schoenen Motors must sell cars each month to break even. (Round the number of cars up to the nearest whole number.) Requirement 2. Schoenen Motors has a target monthly net income of $64,500, What is its target operating income? How many cars must be sold each month to reach the target monthly net income of $64,500? The target monthly operating income is $ Schoenen Motors would need to sell cars to reach the target monthly net income of S64,500. (Round the number of cars up to the nearest whole number.) Enter your answer in each of the answer boxes.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Schoenen Motors is a small car dealership. On average it sells a car for $33,000, which it purchases from the manufacturer for $29,000. Each month, Schoenen Motors pays $66,000 in rent and utilities and
$73,000 for salespeople's salaries. In addition to their salaries, salespeople are paid a commission of $700 for each car they sell. Schoenen Motors also spends $12,000 each month for local advertisements.
Its tax rate is 40%.
Required
1. How many cars must Schoenen Motors sell each month to break even?
2. Schoenen Motors has a target monthly net income of $64,500. What is its target operating income? How many cars must be sold
each month to reach the target monthly net income of $64,500?
Requirement 1. How many cars must Schoenen Motors sell each month to break even?
Schoenen Motors must sell cars each month to break even. (Round the number of cars up to the nearest whole number.)
Requirement 2. Schoenen Motors has a target monthly net income of $64,500, What is its target operating income? How many cars must be sold each month to reach the target monthly net income of
$64,500?
The target monthly operating income is $
Schoenen Motors would need to sell cars to reach the target monthly net income of $64,500. (Round the number of cars up to the nearest whole number.)
?
Enter your answer in each of the answer boxes.
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