Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

1. Criollo Auto Sales is a luxury car sales company. Present the following information about your business and request management advice to meet your business

image text in transcribed
1. Criollo Auto Sales is a luxury car sales company. Present the following information about your business and request management advice to meet your business objectives. Average sale price of their vehicles for sale $ 32,500 Costs incurred for the purchase of the cars from the manufacturer on average $ 23,025 Commission for sellers per car - 3% of the sales price Advertising cost (cars sold or not) $ 7,000 Monthly rental of physical facilities $ 16,000 Monthly salaries of managers, owners and employees $ 125,000 Other fixed monthly costs $ 12,000 REQUIRED. SHOW CLEARLY THE CALCULATIONS MADE 1. Determine the Variable Cost per unit. 2. Determine the Fixed Cost by total. 3. Build a Contribution Margin Approach table for each of the following situations: to. Tie point in units (use 4 decimal places) and in dollars. b. If the owner wants an operating income (Operating Income) of $ 50,000 per month, how many cars must be sold in excess at the point of tie, to achieve the owner's desire? c. If the owner aspires to a Net Income of $ 150,000 per month, how many sales on the point of tie has to materialize? Tax 30%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started