show details plz CVP analysis, income taxes. Brooke Motor is a small car dealers
ID: 2378083 • Letter: S
Question
show details plz
CVP analysis, income taxes. Brooke Motor is a small car dealership. On average, it sells a car for $27,000, which it purchases from the manufacturer for $32,000. Each month, Brooke motors pays $43, 200. in rent and utilities and $600 for each car they sell. Brooke motors also spends $13,000 each month for local advertisements. Its tax rate is 40%. How many cars must broke motors sell each month to break even? Brooke motors has a target monthly net income of $51,000. What is its target monthly operating income? How many cars must be sold each month to reach the target monthly net income of $51,000?Explanation / Answer
Brooke Motors is a small car dealership. On average, it sells a car for$27,000, which it purchases from the manufacturer for $23,000.
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Let # of cars sold per month be "x"
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Net car income = (27,000-23000)x dollars
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Each month, Brooke Motors pays $48,000 in rent and utilities and $68,000 for salespeople
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