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Honest Charlenes Auto Dealer purchases used cars at auto auctions and sells them retail. The autos, on average, sell for approximately $ 2 0 ,

Honest Charlenes Auto Dealer purchases used cars at auto auctions and sells them retail. The autos, on average, sell for approximately $20,000 each and cost Charlene $13,500. The costs that the company incurs in a typical month are listed below:Costs Cost FormulaSelling:Advertising $3,900 per monthPreparation of Autos for Delivery$ 900 per auto soldSales salaries & commissions $4,100 per month, plus 7% of salesUtilities (same every month) $5,200 per monthDepreciation on sales facility $4,500 per monthAdministrative:Executive salaries $12,800 per monthDepreciation on office equipment $2,200 per month

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