#2. Break-even Analysis Exercise-Autos

YOU MUST SHOW YOUR CALCULATIONS TO RECEIVE POINTS

Step 1: An automotive car dealership has $150,000 in fixed costs and variable costs per unit of $35,000. Cars sell on average for $50,000 each. What is the companys breakeven point in terms of the number of cars that need to be sold to break even? (5 points)

Step 2: If the automotive dealership wants to make $125,000 profit, how many cars will it have to sell? (5 points)

Step 3: If the company can sell 30 cars, how much profit will the firm make? (5 points)