Can anyone explain to me in simplified terms exactly how I should figure out the cost volume profit. I am attempting to do homework, I am an online student, and none of this makes sense. If you could just break it down for me. I can't figure out the first step.

Here is the question, please don't answer but tell me how to go about getting the answer or formula.

Greaves Motors is a small car dealership. On avg. it sells a car for 25K, which it purchases from the manufacturer for 22K. Each mth, Greaves Motors pay 50K in rent and utilities, and 60K for salesperople's salaries. In addition to their salaries, salespeople are paid a commission of 500 for each car they sell. Greaves Motors also spend 10K ea. mth. for local advertisements. It's tax rate is 40%.

1. How many cars to sell each mth. to break even?

2. Greaves has a target mthly net inc of 54K. What is it's target mthly operating inc.? How many cars must be sold each month to reach the target monthly net income of 54K?:confused: