Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

Ali Motors is a car dealership. On average, it sells a car for $32,000, which it purchases from the manufacturer for 28,000. Each month, Ali

Ali Motors is a car dealership. On average, it sells a car for $32,000, which it purchases from the manufacturer for 28,000. Each month, Ali Motors pays $ 53,700 in rent and utilities and 69,000 for sales peoples salaries. In addition to their salaries, Sales people are paid a commission of $ 400 for each car they sell. Ali motors also pends $10,500 each month for local advertisements.

  1. How many cars must Ali Motors sell each month to beak even?

  1. Ali Motors has a target monthly net income of $ 69,120. What is its target monthly operating income?
  1. How many cars must be sold each month to reach the target monthly net income of $69,120. If the there is not tax.

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

Recommended Textbook for

Linear Algebra And Its Applications

Authors: David Lay, Steven Lay, Judi McDonald

6th Global Edition

9781292351216

Students also viewed these Accounting questions