Client Rate / hour: $60 Ave. hour served / Client: 12 hours Hourly pay /...

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Accounting

  • Client Rate / hour: $60
  • Ave. hour served / Client: 12 hours
  • Hourly pay / employee: $18
  • Ave. hour work / employee: 20 hours
  • Employee Util Req: 80%
  • IT expenses: $900
  • Internal Management Annual Salary: $10,000
  • Rent & Facility Cost: $2,000
  • Recreation Cost: $200

If the Employee Util Req drop from 80% to 50%, the number of customers that you need to reach breakeven will

Given the following information:

  • Client Rate / hour: $60
  • Ave. hour served / Client: 12 hours
  • Hourly pay / employee: $18
  • Ave. hour work / employee: 20 hours
  • Employee Util Req: 80%
  • IT expenses: $900
  • Internal Management Annual Salary: $10,000
  • Rent & Facility Cost: $2,000
  • Recreation Cost: $200

If the Employee Util Req drop from 80% to 50%, the number of customers that you need to reach breakeven will

we cannot decide based on the given information

go up

go down

be the same

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