Question
O'Reilly Motors is a small car dealership. On average, it sells a car for $28,000, which in purchases from the manufacturer for $24,000. Each month,
O'Reilly Motors is a small car dealership. On average, it sells a car for $28,000, which in purchases from the manufacturer for $24,000. Each month, O'Reilly Motors pays $50,400
in rent and utilities and $68,000 for salespeople's salaries. In addition to their salaries, salespeople are paid a commission of $400 for each car they sell. O'Reilly Motors also spends
$13,500 each month for local advertisements. Its tax rate is 40%.
How many cars must O'Reilly Motors sell each month to break even?
O'Reilly Motors has a target monthly net income of $69,120. What is its targeted monthly operating income? How many cars must be sold each month to reach the target monthly net income of $69,120?
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Horngrens Cost Accounting A Managerial Emphasis
Authors: Srikant M. Datar, Madhav V. Rajan
16th edition
134475585, 978-0134475998, 134475992, 978-0134475585
