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Eckert Motors is a small car dealership. On average, it sells a car for $ 3 0 , 4 0 0 , which it purchases
Eckert Motors is a small car dealership. On average, it sells a car for $ which it purchases from the manufacturer for $ Each month, Eckert Motors pays $; in rent ant
and $ for salespeople's salaries. In addition to their salaries, salespeople are paid a commission of $ for each car they sell. Eckert Motors also spends $ each month for
advertisements. Its tax rate is
Read the requirements.
F Target operating income Target net income Tax rate
Now, calculate Eckert Motors' target monthly operating income. Round your answer up to the nearest whole dollar.
Target operating income:
Next, select the formula used to calculate the number of cars that must be sold to reach the target net income.
A Quantity of cars required to be sold Total fixed costs Target operating income Selling price
B Quantity of cars required to be sold Total costs Target operating income
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