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In doing some discovery-driven planning, you believe you could reduce managers from 3 to 2, with the assumption that 2 managers can cover the 3
In doing some discovery-driven planning, you believe you could reduce managers from 3 to 2, with the assumption that 2 managers can cover the 3 stores. Also, a member of the investment team knows the owners of the malls and believes he can get the lease amount reduced by 5%. Re-calculate the breakeven number of cookies needed to sell to cover the fixed costs and earn the needed profit after making the following adjustments to the fixed costs (operating expenses): Reduce the managers from 3 to 2. Increase the Manager Salary Expense for the remaining managers to $60,000 per year per manager. Reduce the benefits cost by 1/3, but calculate the new payroll taxes at 6.2% of the Manager Salary Expense. Reduce the lease expense by 5% due to the potential ability to negotiate a better deal
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