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? a. 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.