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Unformatted text preview: 20x = 9900 + 4.50x 15.50x = 9900 X = 639 The BEP for the year is 639 subscriptions. This is feasible for the two employees because they are thought to be able to handle 650 subscriptions without hiring additional help. Some slack capacity will exist (not much). To run 639 subscriptions per year will cost $2,875.50. That plus the fixed cost of $9,900.00 comes to $12,775.50. at $20.00 per subscription 639 will bring in $12,780.00 and leave a small profit of $4.50....
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This note was uploaded on 11/28/2010 for the course A a taught by Professor A during the Spring '09 term at Punjab Engineering College.
- Spring '09