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?

Answer rating: 100% (QA)

To calculate the breakeven point we need to determine the number of cars OReilly Motors must sell to ... View the full answer