Question

please complete all 4 parts. & formula. Thank you.

الا الك||||اله لاله ای Question Holo Schoenen Motors is a small car dealership. On average, it sells a car for $27.000, which a purchases from the manufacturer for $23,000. Each month, Schoenen Motors pays $18,200 incent and utilities and 500.000 for salespeople's salaries. In addition to their salaries, salespeople are paid a commission of 600 for each car they sell Schoenen Motors also spends $13,000 each month for local advertisements. Its tax rate is 40% Read the requirements Requirement 1. How many cars must Schoenen Motors sell each month to break even? Let's begin determining the formula for the breakeven number of cars Breakeven number of cars Faed costs Contribution margin per unit Schoenen Motors must sel each month to break even Enter any number in the edit fields and then click Check Answer Check Answer Clear All 4 Dans remaining 0 Y R W E االه الاالله الالالالال2 K ا G D S B N M

Answer 1

Answer

Break even quantity = fixed cost / contribution margin per unit

Contribution margin per unit

= selling price - variable cost

Selling price is $27,000

Variable cost includes purchase cost ($23,000) and sales people commission ($600)

Variable cost per unit = 23,000 + 600 = $23,600

Fixed cost includes $48,200 in rent , $68,000 for utilities and advertising $13,000.

Fixed cost = 48,200 + 68,000 + 13,000 = $129,200

Contribution margin per unit = 27,000 - 23,600 = $3,400

Break even quantity = 129,200 / 3,400 = 38 units (cars)

Schoenen motors must sell 38 cars each month to break even.

Calculations and equations are presented above.

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