Answered step by step
Verified Expert Solution
Question
1 Approved Answer
(d) Ishara Motors is a small car dealer. On average, it sells a car for Rs. 2,700,000, which it purchases from the manufacturer for Rs.
(d) Ishara Motors is a small car dealer. On average, it sells a car for Rs. 2,700,000, which it purchases from the manufacturer for Rs. 2,300,000. Each month, Ishara Motors pays Rs. 482,000 in rent and Rs. 680,000 for sales people's salaries. In addition to their salaries, sales people are paid a commission of Rs. 60,000 for each car they sell. Ishara Motors also spends Rs. 130,000 each month for local advertisements. Its tax rate is 40%. Required: 1) How many cars must Ishara Motors sell each month to break even? 2) Ishara Motors has a target monthly net income of Rs. 5,100,000. How many cars must be sold each month to reach the target monthly net income of Rs. 5,100,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started