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2) B & D Motors is a local car dealership. On average it sells a car for $48,000 which it purchased from the manufacturer for
2) B & D Motors is a local car dealership. On average it sells a car for $48,000 which it purchased from the manufacturer for $33,000. It also pays the salespeople a commission of $800 for each car sold. B&D Motors spends $12,000 per month on advertising. Monthly rent and utilities total $60,000 and Monthly salaries are $70,000. Its tax rate is 40%. a) How many cars must B&D sell each month to break even? b) B&D has a target monthly net income (income after taxes) of $42.600. What is the target monthly operating income-income before taxes? How many cars must be sold each month to meet the target monthly net income of $42,600. 15 Points
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