Employees are a large part of an organizations supply chain, commuting, checking in, producing, meeting, checking out, commuting back home. WeWork, a company that rents office space on-demand, has rapidly grown in the past few years. WeWorks central value proposition is that it can save companies money by reducing real estate costs for its employees. In an information economy, work can often be done from home, connected to the companys servers. Whether you are designing a new solution or monitoring robots filling orders and building on an assembly line, the new age of work focuses on performance over presence. This is where companies like WeWork come in.

Suppose you work for WeWork and you have been asked to show potential customers costs savings from shifting their employee supply chains from having physical offices to renting WeWork spaces when needed. So, you visit the customers office HQ (headquarters) and run an analysis.

The Customer office HQ has a sprawling 10,000 sqft office. Prices run at $200 per sqft of office space. That is $2 million is office space. The company took out a loan to build the space and has to pay $15,000 per month in mortgage (20 office days per month). Every time employees come in to work, it costs the company $10 to maintain office of each employee per day (coffee, printing costs, Internet, office supplies, climate control, maintenance, bathroom supplies). The average employee makes the company $30 per hour and is paid $25 per hour (hint: use this information to calculate revenue per employee). Employees work 6 hours out of 8 hours in the office per day (2 hours wasted from checking in, breaks, chatting).

1. How many employees does the company need just to break even its costs of maintaining physical offices?
   1. Formula: Fixed Costs = Revenue per unit - Variable Costs per unit
2. If you were WeWork, how would you use this information to convince potential customers to switch to WeWork and get rid of their office real estate? As per WeWork WeWork membership costs $45/month. If you want to rent a desk for a day it's $50 plus the membership fee. $350/month gets you unlimited access to the shared workspaces but a dedicated desk will cost you anywhere from $275 to $600/month.

Come up with two convincing reasons based on the number of employees and cost savings.