The New River Community Council (NRCC) hired a new part-time newsletter coordinator (social work student) $6,000 per year and has also hired another part-time student as an assistant $3,900 per year. Together the newsletter coordinator and the part-time assistant ($9,900 per year) believe they can handle up to 650 newsletter subscribers; the annual subscription price of the newsletter to $20; the variable costs $4.50.
A. Recompute the BEP for the newsletter program. What is the new BEP? Is the new BEP a feasible solution? Why or why not? Will any slack capacity exist? If so, how much? If not, why not?
B. Will any slack capacity exist? If so, how much? If not, why not?