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HSM-260 wk 4 ~ assignment Fised cost, varilable costs, and break-even point

# HSM-260 wk 4 ~ assignment Fised cost, varilable costs, and break-even point

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Running head: FIXED COSTS, VARIABLE COSTS, AND BREAK-EVEN POINT 1 Fixed Costs, Variable Costs, and Break-Even Point Anna Borsick HSM-260 December 4, 2011 Marilyn Gardner

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FIXED COSTS, VARIABLE COSTS, AND BREAK-EVEN POINT 2 Fixed Costs, Variable Costs, and Break-Even Point What is the new BEP? 20x = 9,900 + 4.5x -4.5 -4.5 15.5x =9,900 /15.5 /15.5 X=638.71 (monthly BEP) 12 * 638.71 = 7,664.52 (fiscal-year BEP) Is the new BEP a feasible solution? Why or why not?
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Unformatted text preview: No, because it does not cover the new assistant’s salary. When you take the old position and the new position it equals 9,900 dollars, but the Break-Even Point is only 7,664.52 dollars. • Will and slack capacity exist? If so, how much? If not, why not? The slack capacity is 125; the difference between 525 subscriptions to 650 is 125, there for 125 subscriptions is the slack capacity....
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