Garrett Motors is a small car dealership. On average, it sells a car for $31,000, which it purchases from the manufacturer for $27,000. Each month, Garrett Motors pays $51,600 in rent and utilities and S73,000 for salespeople's salaries. In addition to their salaries, salespeople are paid a commission of S600 for each car they sell. Garrett Motors also spends $8,000 each month for local advertisements. Its tax rate is 40%. Read the requirements Requirement 1. How many cars must Garrett Motors sell each month to break even? Let's begin by determining the formula for the breakeven number cars. Breakeven number of cars Fixed costs Contribution margin per unit Garrett Motors must sell 39 each month to break even. Requirement 2. Garrett Motors has a target monthly net income of $65,280. What is its targeted monthly operating income? How many Determine the formula to calculate the target operating income. Requirements Targeted not income Target ) = operating income + Tax rate The target monthly operating income is 1. How many cars must Garrett Motors sell each month to break even? 2. Garrett Motors has a target monthly net income of $65,280. What is its targeted monthly operating income? How many cars must be sold each month to reach the target monthly net income of $65,280? Print Done