Clipboard N Font Alig F19 A B C D Question Two Westover Motors is a small car dealership. The company's accounting staff is attempting to figure out how many cars Westover must sell to (a) breakeven and (b) earn a target net income of $69,120. Use the information below to assist these accountants in determing the required sales in units for each scenario, respectively. 3 Average Selling Price per Car $ 32,000 4 Average Purchase Price per Car 28,000 5 Showroom Rent Expense 43,700 6 Showroom Utilities Expense 10,000 7 Salesperson Salaries Expense 69,000 8 Sales Commission per Car 400 9 Advertising Expense 10,500 10 Tax Rate 40% 71 Requirement One 12 Determine how many cars Westover Motors must sell to break even 13 Fixed Costs 14 15 16 17 18 Total Fixed Costs 19 20 Unit Contribution Margin 21 Average Unit Selling Price 22 Variable Costs: 22 Question One Question Two Question Three Ready N Font IS Clipboard F19 fr B D 40% 10 Tax Rate 11 Requirement One 12 Determine how many cars Westover Motors must sell to break even 13 Fixed Costs 14 15 16 17 18 Total Fixed Costs 19 20 Unit Contribution Margin 21 Average Unit Selling Price 22 Variable Costs: 23 24 25 Total Variable Costs 26 Unit Contribution Margin 27 28 Breakeven in Units 29 Requirement Two Determine how many cars Westover Motors must sell to earn a 30 target net income of $69,120 over the period. 31 Target Net Income 32 Divide by: (1-Tax Rate) 33 Target Operating Income 34 35 # of Cars to be sold to earn target operating income Question One Question Two Question Three Ready