Simple break-even analysis Moonbeam Company is the exclusive Montana distributor for a small manufacturer of alcohol-powered compact automobiles. The only model currently available is the Moonshine 85P, which sells for $8,000 and for which Moonbeam pays $6,500. Moonbeam's other variable costs are sales commissions, dealer preparation, and advertising, which together amount to $600 per car. Fixed costs are $10,800 per month. In June the company sold 10 cars and in July it sold 18.

Transcribed Image Text:

REQUIRED a. Calculate the monthly break-even sales volume. b. Calculate net income for June and July. c. Find the rate of return on sales for July.