Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Victor plans to set up an on-line business selling software applications that he develops and supports. He believes that a price of $130 for his

image text in transcribed
Victor plans to set up an on-line business selling software applications that he develops and supports. He believes that a price of $130 for his product including the technical support would be competitive. His monthly fixed expenses amount to $850. Victor would hire some college students to provide the technical support of the application paying them for 3 hours at $15 per hour for each client. (4 marks) a) How many clients does Victor need to acquire to break even? b) If he wants to achieve a profit of $1,360 monthly, how many clients does he need

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ray Garrison, Theresa Libby, Alan Webb

9th canadian edition

1259269477, 978-1259269479, 978-1259024900

Students also viewed these General Management questions