Essay
Victor plans to set up an online 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.
a) How many clients does Victor need to acquire to break even?
b) If he wants to achieve a target profit of $500 monthly, how many clients does he need?
Correct Answer:
Verified
P = $130, FC = $850, VC = 3($1...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q7: Citizen sells a watch for $35 at
Q8: A local restaurant has the best meals
Q9: The gas division of Power-U-Up plans to
Q10: A company has variable costs that are
Q11: Sunbeam wants to sell microwaves at a
Q13: Elaine's business budget included sales of $350
Q14: Raider Corporation made $130 000 in sales
Q15: Samsung sell refrigerators at $900 per unit.
Q16: Barb has a hot-dog stand near the
Q17: Given the following chart, calculate the cost