CVP analysis, income taxes. Brooke Motors is a small car dealership. On average, it sells a car f $27,000, which it purchases from the manufacturer for $23,000. Each month, Brooke Motors pays $48,200...

CVP analysis, income taxes. Brooke Motors is a small car dealership. On average, it sells a car f $27,000, which it purchases from the manufacturer for $23,000. Each month, Brooke Motors pays $48,200 in rent and utilities and $68,000 for salespeople’s salaries. In addition to their salaries, salespeople are paid a commission of $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 Brooke Motors sell each month to break even?

Dec 14, 2021
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