If you need to pay an average of $4,000 per month in order to attract auto sales

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If you need to pay an average of $4,000 per month in order to attract auto sales employees, then what must be the per employee monthly quota to achieve commission, given the following information?

a. Cars sell for approximately $24,000.

b. The manufacturer charges your dealership $21,000 per car on average.

c. Your dealership needs about $2,275 per car in gross profit to cover fixed costs and generate and adequate return to the investors.

d. What is left over after the gross profit can be used to pay the commission to the salesperson.

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Related Book For  book-img-for-question

Entrepreneurial Financial Management An Applied Approach

ISBN: 9781000650488

5th Edition

Authors: Jeffrey R Cornwall, David O Vang, Jean M Hartman

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