Basics of Engineering Economy 2nd Edition by Anthony Tarquin,Leland Blank

Exercise 6

A call center in India used by U.S. and U.K. credit card holders has a capacity of 1,500,000 calls annually. The fixed cost of the center is $850,000 with an average variable cost of $1.95 and revenue of $3.25 per call. Find the percentage of the capacity that must be placed each year to break even.