Patel Motors is a small car dealership. On average, it sells a car for $29,000, which it purchases from the manufacturer for $25,000. Each month, Patel Motors pays $59,800 in rent and utilities and $72,000 for salespeople's salaries. In addition to their salaries, salespeople are paid a commission of $800 for each car they sell. Patel Motors also spends $9,000 each month for local advertisements. Its tax rate is 40%. Read the requirements. Requirement 1. How many cars must Patel Motors sell each month to break even? Let's begin by determining the formula for the breakeven number of cars. Breakeven number of cars each month to break even. Requirement 2. Patel Motors has a target monthly net income of $57,600. What is its targeted monthly operating income? How many cars must be sold each month to reach the target monthly net income of $57,600? Determine the formula to calculate the target operating income. Target operating income The target monthly operating income is $ Finally determine the formula to calculate the number of cars that are required to be sold Quantity of cars required to be sold cars to reach the target monthly income of $57,600