Motors is a small car dealership. On average, it sells a car for

$27,000,

which it purchases from the manufacturer for

$23,000.

Each month,

Garrett

Motors pays

$48,200

in rent and utilities and

$68,000

for salespeople's salaries. In addition to their salaries, salespeople are paid a commission of

$600

for each car they sell.

Garrett

Motors also spends

$13,000

each month for local advertisements. Its tax rate is

40%.

Read the requirements

How many cars must Garrett Motors sell each month to break even?
2.	Garrett Motors has a target monthly net income of $51,000. What is its targeted monthly operating income? How many cars must be sold each month to reach the target monthly net income of $51,000?

How many cars must

Garrett

Motors sell each month to break even?

Let's begin by determining the formula for the breakeven number of cars.

Breakeven number of cars

=