paid a commission of $500 for each car they sell. Bailey Motors also spends $10,000 each month for local advertisements. Its tax rate is 40%. Read the Requirement 1. How many cars must Bailey Motors sell each month to break even? Let's begin by determining the formula for the breakeven number of cars. Breakeven number of cars \begin{tabular}{|l} 1. How many cars must Bailey Motors sell each month to break even? \\ 2. Bailey Motors has a target monthly net income of $63,000. What is its targeted \\ monthly operating income? How many cars must be sold each month to reach \\ the target monthly net income of $63,000? \end{tabular}